LIC gets GST Demand Notice of Rs. 663 Crore

The Life Insurance Corporation of India (LIC) suffered a major blow when tax officials issued a demand notice for around Rs. 663.45 crore. The demand, which included interest and penalties, was communicated on January 1 by the Office of the Commissioner of CGST and Central Excise, Chennai North Commissionerate, according to LIC in a regulatory filing.

The tax authorities’ investigation indicated that the demand is related to the illegal use of Input Tax Credit (ITC) and the failure to pay tax on turnover that was incorrectly represented as non-GST supply in GSTR-1 for the financial years 2017-18 and 2018-19.

In response to the notice, LIC has stated its intention to submit an appeal with the Commissioner (Appeals), Chennai, within the timeframes specified. The corporation underlined that this development will have no major impact on its financials, operations, or other activities.

This revelation follows another demand order received by LIC on January 2 for around Rs. 116 crore for Telangana state. The day before, on January 1, LIC received a similar notification requesting around Rs. 806 crore for late payment of GST, with interest and penalty, in the state of Maharashtra.

The current developments highlight the difficulties that major businesses encounter while negotiating the complexities of the GST framework, with LIC actively responding to the requests and signalling its intention to resolve these issues through appropriate legal procedures.