LIC gets GST notice of Rs 37,000 for paying taxes at lower rate

In recent news, it was reported that LIC gets GST notice for paying taxes at a lower rate. Explore further in order to know more details. You are required to read the article for more details and information about the same. Follow us around for all the insights and fresh updates.


LIC gets GST notice for paying taxes at a lower rate

Currently, the LIC has been asked to pay a GST of 10,462, a penalty of 20,000, and an interest of 6,382 which is a regulatory filing stated. Reportedly, on October 11, 2022, The Life Insurance Corporation of India informed the stock exchanges that it had been issued with a notice of the payment of Goods and Services Tax alongside a penalty and interest which amounted to nearly 37,000. However, the notice was issued by the State Taxes Officer which commences to the financial year of 2019-20. The state runs an insurer that has been asked to submit an extra amount because it had paid taxes on certain invoices at the rate of 12 percent instead of 18 percent. According to the notice, the LIC would now be paying a GST of 10,462 penalty of 20,000, and interest of 6,382 which sums up to 36,844. Meanwhile, the LIC will be adding the notice with no material impact on its monetary terms, operations, and other activities.

However, one development has been made which comes days after LIC has received notices from the Income Tax department for a penalty amounts to 84 crore. However, the notice pertaining to FY13, FY19, and FY20 was issued on September 29, 2023, which was noticed by the company on October 3. On October 11, 2023, the stock market shares were trading as per green signal. Moreover, the script was valued at 638.90 a piece on the BSE at 2:54 p.m., up to 0.5 percent against the previous day’s close. It was reported that last month in September, the LIC received another GST notice of 290 crore from the Bihar taxation affairs. However, this included a tax demand of 166.75 crore, with an interest of 107.5 crore and a penalty of 16.67 crore. Furthermore, the insurer had informed the exchanges that it shall file an appeal before the GST Appellate Tribunal and against the said order within the given timelines.

Reportedly, LIC’s weak performance continued in the month of September as well. As per the data generated by the Life Insurance Council, LIC reported a 27% decline in new business premiums even as private insurers reported growth and steady actions. Thank you for being a patient reader. As you know, shares are always appreciated.

Shreya Gupta

Contract Specialist with 3 years of experience in end-to-end Contract Lifecycle Management for clients with global and domestic operations.

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