State-owned insurer Life Insurance Corporation of India (LIC) on Thursday (February 27) said it has received a goods and services tax (GST) demand order from the Deputy Commissioner of State Tax, Mumbai, for the financial year 2020-21. The total demand, including GST, interest, and penalty, amounts to ₹479.88 crore.
The breakdown of the demand is as follows: ₹242.23 crore in GST, ₹213.43 crore in interest, and ₹24.22 crore as penalty. The notice has been issued on the grounds of wrong availment and short reversal of input tax credit (ITC), interest on late payments, and short payment of tax liability.
“…this is to inform that the Life Insurance Corporation of India (the Corporation) has received communication/ demand order for Goods & Service Tax, Interest and penalty for Maharashtra State. The order is appealable before the Joint Commissioner of State tax (Appeals), Mumbai,” LIC said in a regulatory filing.
LIC stated that the order is appealable before the Joint Commissioner of State Tax (Appeals), Mumbai, and clarified that the demand does not have any material impact on its financials or operations. “The financial impact of the demand is to the extent of the GST, Interest and Penalty. There is no material impact on financials, operations or other activities of the Corporation,” LIC added.
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