Maharashtra : LIC receives GST demand notice of Rs 806 crore from Mumbai tax office
Maharashtra : LIC receives GST demand notice of Rs 806 crore from Mumbai tax office
LIC has been sent a GST notice of ₹806 crore, which includes a massive penalty of ₹404, by the Maharashtra tax department.
Life Insurance Corporation (LIC) of India faces a significant GST notice from the Maharashtra deputy commissioner of state tax, imposing a hefty penalty of ₹404 crore for various shortcomings in tax-related compliances during the fiscal year 2017-2018.
The Maharashtra tax department issued a GST notice amounting to ₹806.4 crore, including ₹365.02 crore for GST dues, ₹404.7 crore as a penalty, and an additional interest payment of ₹36.5 crore. This development follows multiple notices that LIC has recently received from various state governments.
As per the tax notice, LIC has been cited for non-compliance with various rules set by the state department, including the failure to reverse input tax credit in accordance with CGST rules 37 and 38. GST officials further highlighted that LIC did not adhere to the reversal of input tax credit availed from reinsurance.
LIC is also liable to pay interests and dues on the delayed payment made with GSTR-3B. LIC also disclosed less reverse charge mechanism (RCM) liability than shown by its suppliers, the notice said.
However, LIC is planning to file an appeal in Maharashtra against the order before the commissioner. The insurance firm also said in a company filing that there will be no impact on the operations or activities of the company in view of the GST notice.
Notably, it’s not only Maharashtra, but LIC has been facing multiple GST notices from states across India.
