The Life Insurance Corporation of India (LIC) revealed on January 3, 2024 that it had received a demand notice from tax authorities. The notification stated that an approximate sum of Rs 663.45 crore was outstanding as a result of an alleged shortage in Goods and Services Tax (GST) payments.
The revelation was made through a regulatory filing in which LIC stated that on January 1st, the Office of the Commissioner of CGST & Central Excise, Chennai North Commissionerate, issued the communication and demand order, which included interest and penalties.
The demand is rooted in allegations of LIC incorrectly availing Input Tax Credit (ITC) and neglecting to pay tax on a turnover that was erroneously declared as a non-GST supply in GSTR-1 for the financial years 2017-18 and 2018-19.
Misdeclaration in GSTR-1 refers to inaccuracies or false information provided by a taxpayer in their Goods and Services Tax Return-1 (GSTR-1) filing. GSTR-1 is a monthly or quarterly return that businesses registered under GST (Goods and Services Tax) in India are required to file. It contains details of outward supplies, including sales and invoices issued during a specific period.
In response to this, LIC has conveyed its intent to file an appeal before the Commissioner (Appeals), Chennai, ensuring adherence to the prescribed timelines for such actions.
Recently, the Telangana Tax Authority issued a GST notice of Rs. 138 crores to Life Insurance Corporation of India (LIC). The “demand order-cum-penalty notice” pertained to fiscal year 2017-18 and the company has been asked to pay Rs. 81.2 crore in the form of pending GST dues, along with a penalty of Rs 93.2 crore and interest of Rs. 8.1 crore.
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