Life Insurance Corporation (LIC) on Monday (January 1) received a demand order, including a penalty, totaling ₹806 crore for the fiscal year 2017-18, pertaining to goods and services tax (GST) obligations in the state of Maharashtra.
The demand, totalling ₹806 crore, includes ₹365 crore in GST, ₹404 crore in penalties, and ₹37 crore in interest, according to a stock exchange filing.
The corporation shall file an appeal before Commissioner (Appeals), Mumbai against the said order within the prescribed timelines,” the company said.
The demand order centres around alleged violations, primarily related to non-reversal of input tax credit under CGST Rules 42 & 43.
Reversal of ITC availed from reinsurance, interest on delayed payment recorded with GSTR-3B, interest on advance (proposal deposit) received, and discrepancies in reporting reverse charge mechanism (RCM) liability in GSTR-9/3B compared to supplier disclosures in GSTR-1.
In response to the communication, LIC has indicated its intention to file an appeal before the Commissioner (Appeals), Mumbai, within the prescribed timelines.
Despite the substantial demand and penalty figures, LIC has asserted that there is no material impact on its financials, operations, or other activities.
Shares of Life Insurance Corporation of India ended at ₹858.35, up by ₹25.05 or 3.01% on the Bombay Stock Exchange (BSE).
