Rs 290 Crore GST Notice To LIC? How Insurance Behemoth Responded

PATNA: Life Insurance Corporation of India (NSE: LICI) has received a Rs 290-crore tax notice from the Goods and Services Tax (GST) authority in Patna. “The Bihar-Additional Commissioner State Tax (Appeal), Central Division, Patna, filed a demand for GST, interest and penalty on September 21,” LIC said in a regulatory filing.

LIC said the company would file an appeal before the GST Appellate Tribunal against the said order within prescribed timelines. Among others, the tax authority, Goods and Services Tax (GST), Patna, has alleged that LIC had not reversed the input tax credit (ITC) availed on premiums received by the company from policyholders.

“Non-reversal of the ITC availed & utilized on the item non-leviable to GST on the portion of the premium received by the company from the policyholder and non-reversal of ITC of the portion of agents’ commission on the item non-leviable to GST on the portion of the premium and exempt policies,” the tribunal said in its notice.

Of the Rs 290 crore fine, Rs 166 crore is the GST component, while the interest is Rs 107 crore. The tribunal imposed a penalty of Rs 16.67 crore.

LIC share price

Meanwhile, LICI shares declined on Friday, the fourth straight decline this week. After opening higher at Rs 655.95 per piece on September 22, 2023, LICI shares fell by Rs 3.25 and closed at Rs 651.30 apiece, down 0.50 percent.

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