Life Insurance Corporation of India has received a communication/demand order related to Goods & Service Tax, interest, and penalty for Maharashtra State. The demand pertains to the fiscal years 2021-22 to 2023-24. The total demand includes ₹13,825,199,038 in GST, ₹8,495,690,949 in interest, and ₹1,382,519,904 in penalty. The company has the option to appeal the order. According to LIC, this development is not expected to have a material impact on the Corporation’s activities.
GST Demand Order
Life Insurance Corporation of India (LIC) has been issued a demand order concerning Goods and Services Tax (GST), along with applicable interest and penalties. The order specifically covers the financial years 2021-22 through 2023-24.
Financial Details
The demand order includes:
- GST: ₹13,825,199,038
- Interest: ₹8,495,690,949
- Penalty: ₹1,382,519,904
Reason for Demand
The demand is primarily related to Excess Input Tax Credit (ITC) that was claimed by the company.
Next Steps
LIC has the option to appeal this order before the Commissioner (Appeals) in Mumbai.
Impact Assessment
The Life Insurance Corporation of India (LIC) has stated that the financial impact of this demand is limited to the amount of GST, interest, and penalty. The company assesses that the current demand will not have a significant impact on its operations or other ongoing activities.
Source: BSE