LIC Hit With Rs 183 Crore GST Demand from Telangana Tax Office

• GST Notice Amount and Components:

- LIC received a Goods and Service Tax (GST) notice for Rs 183 crore from the Telangana taxation authority.

- The notice includes pending dues, penalty, and interest.

• Notice Details:

- The demand order-cum-penalty notice is related to the fiscal year 2017-18.

- LIC is required to pay Rs 81.2 crore for pending GST dues, Rs 93.2 crore as a penalty, and Rs 8.1 crore as interest.

• Charges Against LIC:

- LIC is charged with "short payment under reverse charge mechanism" and claiming "excess input tax credit."

• Legal Recourse:

- LIC can challenge the order before the Appellate Joint Commissioner (ST) in Hyderabad Rural Division.

• Financial Impact Clarification:

- LIC stated that the GST notice has no material impact on its financials, operations, or other activities.

• Stock Market Reaction:

- Despite the assurance of minimal impact, LIC shares dropped by Rs 11.10 or 1.42 percent from the day's high at the time of disclosure.

- At the closing bell, the scrip was valued at Rs 770 on the BSE, down 0.49 percent compared to the previous day's close.

• Nature of Charges in GST Notice:

- State tax officials specified that LIC is penalized for the "non-reversal of the Input Tax Credit (ITC)" on items non-leviable to GST related to premium and agent's commission on certain policies.

• Previous Penalty Notice:

- Prior to this GST notice, LIC had received a Rs 84 crore-penalty notice from the Income Tax Department on October 3.

- The penalty was related to tax filings during the assessment years 2012-13, 2018-19, and 2019-20.

- LIC informed that it would be filing an appeal against the order. Source : https://www.moneycontrol.com/news/business/companies/lic-receives-gst-notice-of-rs-183-crore-from-telangana-tax-authority-11886871.html