LIC Hit with Rs. 57 Crore GST Demand Notice by Tax Dept.
LIC Hit with ₹57 Crore GST Demand Notice by Tax Dept.
In a significant financial development, the Life Insurance Corporation of India (LIC) has received a GST demand notice from the Assistant Commissioner of Delhi’s Ward 206 (Zone 11) for unpaid Goods and Services Tax (GST), interest, and penalties amounting to Rs. 57.18 crore.
The notice, issued by the Assistant Commissioner, Ward 206, Zone 11, Delhi, includes a Goods and Services Tax (GST) demand of ₹31.04 crore, along with an interest component of ₹23.13 crore and a penalty of ₹3.10 crore. The total financial liability under this order amounts to approximately ₹57.18 crore.
The letter by LIC addressed the Listing Departments of both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE), informing them of the development and stating that the order is appealable before the Commissioner (Appeals), Delhi.
The demand has been raised over an alleged excess Input Tax Credit (ITC) availed by LIC. However, the corporation has clarified that the order is appealable before the Commissioner (Appeals) in Delhi and asserted that the financial impact remains limited to the amount in question, with no material effect on its overall operations.
This development is expected to be closely monitored by investors and regulatory authorities, as LIC remains one of India’s most significant financial institutions.
Mariya is the Senior Editor at JurisHour. She has 5+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started as a freelance tax reporter in the leading online legal news companies like LiveLaw & Taxscan.
