• Notification Date: 05-01-2024
  • Notification No: N/A

LIC gets Rs 806 crore GST Demand Notice- Corporation to appeal against order

Life Insurance Corporation of India (LIC) said that it has received a notice for GST payment, along with interest and penalty to the tune of Rs 806 crore. The corporation said that it will file an appeal against the order. LIC received the notice on January 1. 

The insurer said in a filing that it has received a demand order cum penalty notice for GST for FY 2017-18. It has been asked to pay an amount of Rs 3,65,02,67,702 GST, along with a penalty of Rs 4,04,77,06,418 and interest of Rs 36,50,35,206, amounting to over Rs 806 crore. 

“Corporation shall file an appeal before Commissioner (Appeals), Mumbai against the said order within the prescribed timelines,” said the insurer, in response to the Rs 806 crore GST demand for Maharashtra state. The corporation said that there would be no material impact on financials or operations. 

LIC stated that the notice was received on the basis of the following violations: “Non-Reversal of Input Tax Credit u/r 42 & 43 of CGST Rules,2017; Reversal of ITC Availed from Reinsurance; Interest on delayed payment made with GSTR-3B; Interest on Advance (Proposal Deposit) Received; Less RCM liability disclosed in GSTR-9/3B than shown by suppliers in GSTR-1.” 

Before this, Zomato said it received a notice from the Directorate General of GST Intelligence asking why an alleged tax liability of Rs 401.70 crore, along with interest and penalty from October 29, 2019 to March 31, 2022, should not be demanded from the company. The tax liability was based on the amount collected by Zomato as delivery charges from customers. “The company strongly believes that it is not liable to pay any tax since the delivery charge is collected by the company on behalf of the delivery partners,” it responded. 

Rival food-aggregator platform Swiggy is also understood to have received a similar GST notice for tax of about Rs 350 crore.