Tax authorities send Rs 606 crore GST demand notice to LIC

New Delhi, Aug 29, 2024

Life Insurance Corporation of India (LIC) received a demand notice of about Rs 605.58 crore for short payment of Goods and Services Tax (GST) for the financial year 2019-20. The tax authorities sent LIC the notice on Thursday.

The corporation has received a communication/demand order for interest and penalty for Maharashtra, LIC said in a regulatory filing, according to news agency PTI.

The order is appealable before the Joint Commissioner of State tax (Appeals), Mumbai, it said.

The matter pertains to wrong availment and short reversal of Input Tax Credit (ITC) and interest on late payments, it said.

LIC received a GST notice of Rs 294 crore with interest of Rs 281 crore and a penalty of Rs 29 crore from the deputy commissioner of state tax, Mumbai.

There is no material impact on financials, operations or other activities of the insurance behemoth, it added.

LIC has over 14.1 lakh agents, which is among the largest agency force among insurance companies worldwide.

The corporation's market share of first year premium income rose to 64%, up from 61.4% year-over-year. In the individual business segment, LIC held a 39.3% market share, while it dominated the group business with a 76.6% share.

Total premium income for the quarter increased by 15.7% to Rs 1,13,770 crore, compared to Rs 98,363 crore in the same quarter last year.

The individual business premium grew by 7.04% to Rs 67,192 crore, while the group business premium rose by 30.9% to Rs 46,578 crore.

LIC’s assets under management increased by 16.2% year-over-year, reaching Rs 54 lakh crore. Additionally, LIC’s solvency ratio improved to 2, up from 1.9 in the previous year. The overall expense ratio decreased by 98 basis points to 11.9%, reflecting improved operational efficiency.

[The Times of India]