LIC gets GST notice from the Goods and Services Tax (GST) authority of Patna
Photo : IANS
Patna: The Life Insurance Corporation of India (NSE: LICI) has received a Rs 290 crore tax notice from the Goods and Services Tax (GST) authority of Patna. "The Bihar-Additional Commissioner State Tax (Appeal), Central Division, Patna, has raised a demand of GST, interest and penalty on September 21," LIC said in a regulatory filing.
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LIC said that 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) authority of Patna - has alleged that LIC did not reverse the Input Tax Credit (ITC) availed on the premium received by the corporation 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 corporation from the policyholder and the non-reversal of the ITC of the portion of the agents' commission on the item non-leviable to GST on the portion of the premium and the exempted policies," the tribunal said in its notice.
Of the Rs 290 crore penalty, Rs 166 crore is the GST component, while interest is Rs 107 crore. The tribunal has imposed a penalty of Rs 16.67 crore.
LIC share price
Meanwhile, LICI shares declined on Friday, its fourth consecutive decline this week. After opening higher at Rs 655.95 apiece on September 22, 2023, LICI shares declined by Rs 3.25 and closed at Rs 651.30 apiece, doan 0.50 per cent.