LIC receives GST demand notice of ₹479.88 crore for short payment in FY21

The Life Insurance Corporation of India (LIC) announced on Thursday that it received a demand notice amounting to Rs 479.88 crore for short payment of Goods and Services Tax (GST) for the financial year 2020-21. The communication, which includes interest and penalty, was issued by the Deputy Commissioner of State Tax, Mumbai, on February 27, according to LIC’s regulatory filing.

The notice involves issues such as wrong availment and short reversal of Input Tax Credit (ITC), interest on late payments, and short payment of tax liability. LIC mentioned that the order can be appealed before the Joint Commissioner of State Tax (Appeals), Mumbai.

The financial impact of the notice includes Rs 242.23 crore in GST, Rs 213.43 crore in interest, and Rs 24.22 crore in penalties. LIC assured that there is no material impact on the corporation’s financials, operations, or other activities.