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Insurance behemoth Life Insurance Corporation of India (LIC) has received a goods and services tax (GST) demand notice of ₹806.3 crore from the Deputy Commissioner of Sales Tax, Mumbai.
The life insurer intends to file an appeal against this order before the Commissioner (appeals), Mumbai, a regulatory filing by LIC with the stock exchanges on Monday showed.
The total amount in the notice comprises GST worth ₹365.02 crore, a penalty of ₹404.7 crore, and interest of ₹36.5 crore.
The violations include non-reversal of input tax credit (ITC), reversal of ITC availed of from reinsurance, interest on delayed payment made with GSTR-3B, interest on advance received, and less reverse charge mechanism liability disclosed in GSTR-9/3B than shown by suppliers in GSTR-1, according to the regulatory filing.
“Corporation shall file an appeal before Commissioner (Appeals), Mumbai, against the said order within the prescribed timelines,” LIC said.
The life insurer also said that the GST demand will not have any material impact on any of its financials, operations, or other activities.
This is not the first time that LIC was getting a demand notice on GST. However, this time around, the tax demand amount is a sizeable one, sources said.
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