LIC Receives GST Demand Order of ₹99 Crore Plus Penalty for FY23
Life Insurance Corporation of India (LIC) has received a GST demand order for FY23, totaling ₹99.10 crore in GST and ₹9.91 crore in penalty, along with applicable interest. The demand relates to pre-mature availment of Input Tax Credit. LIC has indicated that the order is appealable and does not expect a material impact on its operations.
While the company states there is no material impact, the demand of over ₹100 crore in GST and penalty is significant and could affect short-term financials.
The company has received a demand order for GST, interest, and penalty, which is a negative development.
Life Insurance Corporation of India (LIC) has received a communication and demand order from the Additional Commissioner, Central GST & Central Excise, Jamshedpur, concerning Goods & Services Tax (GST), interest, and penalty for the Financial Year 2022-23. The demand includes GST amounting to ₹99,09,87,896, applicable interest, and a penalty of ₹9,90,98,790.
The alleged violation pertains to the pre-mature availment of Input Tax Credit on the Reverse Charge Mechanism. The order is appealable before the Commissioner (Appeals), Jamshedpur.
LIC has stated that the financial impact is limited to the demanded GST, interest, and penalty. The Corporation does not anticipate any material impact on its financials, operations, or other activities as a result of this demand.
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