Life Insurance Corporation of India (LIC) on Monday said that it has received a demand notice from the GST authorities for allegedly availing excess Input Tax Credit (ITC) for the financial year 2020-21.
The notice, issued by the Assistant Commissioner of GST, Ward 206, Zone 11, Delhi, demands a total payment of Rs 57,27,99,722, which includes Rs 31.04 crore in GST, Rs 23.13 crore in interest, and Rs 3.10 crore in penalties.
State owned Insurance giant disclosed this development in a regulatory filing to the exchanges. The insurer clarified that the demand is appealable before the Commissioner (Appeals), Delhi, and stated that while the financial impact is limited to the specified amount, there will be no material effect on its overall operations.
The corporation has not indicated its next course of action but is expected to challenge the notice.
Input Tax Credit allows businesses to offset their tax liability by claiming credit for taxes paid on inputs.
