LIC gets GST notice of Rs 605 crore for wrong availment and short reversal of ITC

Life Insurance Corporation of India (LIC) on Thursday got a Goods and Service Tax (GST) notice of Rs 294 crore and a penalty of Rs 29.4 crore from the Deputy Commissioner of State Tax, Mumbai for wrong availment and short reversal of ITC & Interest on late payments, said the company in a stock exchange filing for FY20.

In addition, it also got an interest of Rs 281 crore. "There is no material impact on financials, operations or other activities of the corporation," LIC said in the filing.



According to an exchange filing by LIC, the demand order for FY20 is split into GST of Rs 2,94,43,47,220; interest of Rs 2,81,70,71,780 and penalty of Rs 29,44,73,582.

The company had got a GST demand order on Wednesday from the Deputy Commissioner, DGSTO-5, Bengaluru, Karnataka, for an amount of Rs 38.09 crore. This amount was split into GST of Rs 1,83,32,790; interest of Rs 1,79,19,690 and penalty of Rs 18,33,280.


In July, LIC had filed an appeal before before Joint Commissioner of State Tax, Mumbai against the order issued by Deputy Commissioner of State Tax, Mumbai, for a GST order of Rs 794 crore it received in March, for FY19.

On January 1, a 806-crore GST order was slapped on the company by the Deputy Commissioner of State Tax, Mumbai. The total included GST worth Rs 365.02 crore, penalty of Rs 404.7 crore and interest of Rs 36.5 crore.