LIC gets 2 more GST Penalties from Tamil Nadu and Telangana Authorities

The Goods and Services Tax authorities in Telangana and Tamil Nadu have imposed penalties totalling Rs.230 crore on Life Insurance Corporation of India Ltd., according to exchange filings on Friday.

These penalties are in addition to two similar tax demands received by LIC in the last month, which has heightened regulatory scrutiny on the state-owned insurance.

According to LIC’s statement under Regulation 30 of the Listing Regulations, the Telangana State GST authority filed a demand notice for the financial year 2020-21, levying Rs.1.49 crore in GST, Rs.98.79 crore in interest, and Rs.3.44 crore in penalties. The total sum is about Rs.113.72 crore. The demand comes in response to a supplementary order issued in connection with previous violations of the Integrate GST Act.

The Tamil Nadu State GST Authority made a similar demand for the same financial year, asking Rs.1.04 crore in GST, Rs.45.53 lakh in interest, and Rs.11.03 crore in penalties. This totals Rs.116.58 crore, and LIC intends to appeal the verdict to the Commissioner (Appeals) in Chennai.

Despite the numerous tax demands, LIC claims that these penalties have no meaningful influence on its finances, operations, or other activities.

In addition, on August 30, the insurer informed exchanges that it had cut its interest in two big companies.

LIC reduced its stake in DCM Sriram Ltd. from 8.579% to 6.431%, and HDFC Asset Management Company from 4.909% to 2.883%. The company’s shares closed 2.74% lower at Rs.1,038.90 per share, while the NSE Nifty 50 fell 1.17%.