Shares of Life Insurance Corporation of India (LIC), the country’s largest life insurer, fell as much as 0.78% to ₹770.45 apiece on the BSE today after the Telangana government received a GST notification. The insurance company has received a Goods and Service Tax (GST) notice from the Telangana department of the tax department amounting to approximately ₹183 crore, which includes outstanding dues, penalties and interest. Finally, the stock settled 0.43% lower at ₹770.45.
The requesting states request that the punitive order apply to the 2017-18 fiscal year. Of the total tax claim, ₹81 crore is outstanding GST dues, plus a penalty of around ₹93 crore and interest of around ₹8 crore. The company was accused of “excess input tax credit claimed under the reverse charge mechanism” and “underpayment under the reverse charge mechanism”.
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According to the filing, the insurer will challenge the tax claim before the Appellate Joint Commissioner (ST), Hyderabad Rural Division. The GST notification will not have a material impact on the company’s finances, operations or other activities, the filing added.
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In October this year, LIC received a penalty notice of ₹84 million from the Income Tax Department relating to tax returns for assessment years 2012-13, 2018-19 and 2019-20. Additionally, the company received another GST notice of ₹290 crore from the Bihar Additional Commissioner State Tax (Appeal), Central Division, Patna in September 2023.
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In a separate press release, LIC said it has approved infusion of share capital amounting to ₹25 crore in LIC Mutual Fund Asset Management Limited on preferential basis.
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