LIC faces ₹382 crore GST demand from Gujarat tax authorities

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Insurance behemoth Life Insurance Corporation of India (LIC) has received a GST-related demand order for ₹ 382 crore from the tax authorities of Gujarat. 

The demand notice covers GST dues of ₹ 191 crore and a penalty of ₹ 191 crore besides applicable interest, according to an exchange filing by LIC. The demand, penalty and interest have been levied for FY’2017-18 & 2018-19.

The LIC has said there is no material impact on the Corporation’s financials, operations, or other activities from this demand order. 

LIC would file an appeal before the Commissioner (appeals), Ahmedabad, against the said order within prescribed timelines, the life insurer added in the filing. 

Meanwhile, LIC’s Mauritius Branch has received a demand order for a penalty from the Mauritius Revenue Authority for Mauritius Rupees ₹5,000 (about ₹9,500). The Mauritius branch has filed a representation with the Mauritius Revenue Authority to waive the penalty. The demand of penalty was levied for FY2018 to 2022 for non-compliance with income tax (common reporting standard) Regulations 2018 of Mauritius.  

On January 3, LIC received a combined demand order of ₹667.5 crore from tax authorities in Tamil Nadu, Uttarakhand and Gujarat. Tamil Nadu’s GST demand was for ₹ 663.45 crore, Uttarakhand’s tax authority had asked for ₹4.28 crore, and Gujarat’s tax authority had put a tax demand of ₹39.39 lakh.

LIC had on January 1 received another GST demand order to the tune of ₹806.3 crore from tax authorities in Maharashtra. 

On Friday, Shares of LIC closed in BSE at ₹ 844.4 per share, up ₹8.80 over the previous day’s close.