LIC receives GST notice for Rs 806 cr

The Life Insurance Corporation of India (LIC) has received a demand order for the collection of GST along with interest and penalty for the state of Maharashtra to the tune of Rs 806 crore. LIC received the GST notice of Rs 806.3 crore from the Deputy Commissioner of State Tax, Mumbai. LIC will file an appeal before the Commissioner (Appeals), Mumbai, against the said order within the prescribed timeline. The total includes GST worth Rs 365.02 crore, penalty of Rs 404.7 crore and interest of Rs 36.5 crore. The demand order is on account of 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; and less RCM liability disclosed in GSTR-9/3B than shown by suppliers in GSTR-1. LIC said there is no material impact on financials, operations or other activities of the Corporation.