Chennai tax officials issue a Rs. 663 crore GST demand notice to LIC

The Life Insurance Corporation of India (LIC) stated on Wednesday, 3 January 2024, that tax authorities have issued a demand notice amounting to approximately Rs 663.45 crore, citing short payment of Goods and Services Tax (GST).

The communication, including the demand order for interest and penalty, originated from the Officer of the Commissioner of CGST and Central Excise, Chennai North Commissionerate, on 1 January 2024, as reported in a regulatory filing by LIC. The demand primarily revolves around the erroneous availment of Input Tax Credit (ITC) and the failure to pay taxes on turnover incorrectly declared as non-GST supply in GSTR-1 for the financial years 2017-18 and 2018-19.

LIC has outlined its plan to file an appeal before the Commissioner (Appeals), Chennai, adhering to the prescribed timelines. Despite the sizable demand, the corporation assures stakeholders that there will be no significant impact on its financials, operations, or other activities.

This development follows another demand order received by LIC on Tuesday, 2 January 2024, involving a sum of approximately Rs. 116 crore for the state of Telangana. The Telangana demand notice surfaced just a day after LIC, on 1 January 2024, received a similar intimation for about Rs. 806 crore, covering short payments on GST for 2017-18, coupled with interest and penalties pertaining to operations in Maharashtra.