GST Demand From LIC: The country’s largest insurance company, Life Insurance Corporation of India, has suffered a major setback. Just two days ago, the company had informed that it had received a GST notice of Rs 806 crore from Maharashtra. Now the government company has received notices to pay GST of more than Rs 667 crore. LIC said that it has received these notices from Tamil Nadu, Uttarakhand and Gujarat. The company will appeal against the notices of these three states as soon as possible.
Tamil Nadu, Uttarakhand and Gujarat sent notices
According to LIC, these three states have demanded Rs 667.5 crore from it including GST, interest and penalty. The government company said that the officials of Tamil Nadu, Uttarakhand and Gujarat states have sent these notices to them on various charges. LIC said in its regulatory filing that it will file an appeal against these notices before the commissioner in Chennai, Dehradun and Ahmedabad within the stipulated time.
Accused of violating many rules
In Tamil Nadu, LIC has been accused of wrongly availing Input Tax Credit (ITC), not refunding common ITC and wrongly availing ITC without documentation of duty paid. There is an allegation of non-refund of input tax credit under CGST rules in Uttarakhand. In Gujarat, LIC has been accused of underpayment of tax, mistakes in returns, reverse charge mechanism and wrong ITC on GST sellers.
LIC shares remained flat on BSE
Every state has demanded GST, interest and penalty on the basis of various violations. LIC has clarified that these orders will not have any impact on its financial position, operations or other activities. LIC shares closed at Rs 838.65 on BSE on Wednesday.
GST notice of Rs 806 crore was received only two days ago
Public sector insurance company LIC had informed only two days ago that it has received a GST notice of Rs 806 crore. This included Rs 365.02 crore GST, Rs 404.7 crore penalty and Rs 36.5 crore interest. LIC had received this GST notice from the Deputy Commissioner of State Tax, Mumbai. The company was accused of violating non-reversal rules of input tax credit.
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