Illustration: Ajay Mohanty
State-backed insurer Life Insurance Corporation of India (LIC) has received a goods and services tax (GST) notice of Rs 806.3 crore from the Deputy Commissioner of State Tax, Mumbai. In a regulatory filing, the company said that it would file an appeal against the order.
The total includes GST worth Rs 365.02 crore, penalty of Rs 404.7 crore and interest of Rs 36.5 crore.
According to the filing, 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.
“Corporation shall file an appeal before Commissioner (Appeals), Mumbai, against the said order within the prescribed timelines,” LIC said, adding that the demand will not have any material impact on any of its financials, operations or other activities.
Earlier in October last year, LIC had received a GST demand order accruing to nearly Rs 37,000 for paying taxes at 12 per cent instead of 18 per cent for some invoices during the assessment year 2019-2020.
The state taxes officer in Srinagar had charged the company with a GST of Rs 10,462, a penalty amounting to Rs 20,000 and interest of Rs 6,382, aggregating to Rs 36,844.
LIC received income tax penalty notices of Rs 84 crore in October and Rs 290 crore in September. In September, the interest charged was more than Rs 107.05 crore, and the penalty cited above was Rs 16.67 crore, amounting to Rs 290.4 crore.
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