On January 3, the Life Insurance Corporation of India (LIC) disclosed that tax authorities have issued a demand notice amounting to approximately Rs 663.45 crore, citing a shortfall in the payment of Goods and Services Tax (GST). The corporation acknowledged receiving a communication/demand order for interest and penalty from the Office of the Commissioner of CGST & Central Excise, Chennai North Commissionerate on January 1, as detailed in a regulatory filing.
The demand is linked to the erroneous availment of Input Tax Credit (ITC) and non-payment of tax on turnover incorrectly declared as non-GST supply in GSTR-1 for the fiscal years 2017-18 and 2018-19. LIC has announced its intention to file an appeal before the Commissioner (Appeals), Chennai, within the stipulated timelines.
The corporation clarified that the demand notice does not bear any material impact on its financials, operations, or other activities. Subsequently, on January 2, LIC received another demand order for interest and penalty, this time amounting to around Rs 116 crore, for the state of Telangana, also related to GST underpayment for the year 2017-18.
This demand for Telangana came a day after LIC, on January 1, faced a similar notice for approximately Rs 806 crore, covering GST shortfall for 2017-18, along with interest and penalty, for the state of Maharashtra.