Home GST LIC slapped with GST Notice of Rs. 183 crore from Telangana Tax Authority

LIC slapped with GST Notice of Rs. 183 crore from Telangana Tax Authority

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LIC slapped with GST Notice of Rs. 183 crore from Telangana Tax Authority

LIC slapped with GST Discover of Rs. 183 crore from Telangana Tax Authority

The Telangana division of the tax authorities despatched a Items and Companies Tax (GST) discover to the Life Insurance coverage Company of India (LIC) on December 11. The discover included curiosity, penalty, and excellent funds totalling Rs. 183 crore.

The “demand order-cum-penalty discover” is related to the 2017-18 monetary yr, in accordance with LIC. The company is required to pay curiosity of Rs. 8.1 crore, a penalty of Rs. 93.2 crore, and Rs. 81.2 crore in excellent GST.

A “brief cost underneath reverse cost mechanism” and a declare for an “extra enter tax credit score” have been made, in accordance with the state-run insurance coverage.

Because the Life Insurance coverage Company of India (LIC) knowledgeable the inventory exchanges, the order could also be contested by the Hyderabad Rural Division’s Appellate Joint Commissioner (ST). The company said that the GST discover has no considerable impact on its operations, funds, or different enterprise actions.

LIC shares, nonetheless, had fallen 1.42 %, or Rs. 11.10, from the day’s excessive on the time of disclosure. After a 0.49 % lower from the day gone by’s closure, the scrip’s worth on the BSE was Rs. 770 on the closing bell.

The occasion occurred greater than two months after Bihar hit LIC with a GST invoice totalling Rs 290 crore. This included a tax demand of Rs 166.75 crore, an curiosity of Rs 107.05 crore and a penalty of Rs. 16.67 crore.

Of their discover, the state tax authorities said that the insurer was being penalised for the next: “the non-reversal of the Enter Tax Credit score (ITC) of the portion of the agent’s fee on the merchandise non-leviable to GST on the portion of the premium and the exempted insurance policies and the non-reversal of the ITC availed and utilised on the merchandise non-leviable to GST on the portion of the premium acquired by the Company from the policyholder.”

The Earnings Tax Division then despatched a penalty discover of Rs. 84 crore to the LIC on October 3. The corporate notified the exchanges {that a} penalty had been levied on the tax filings through the evaluation years 2012-13, 2018-19, and 2019-20. The corporate had notified the exchanges that they deliberate to file an attraction towards the order.

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