LIC gets GST demand penalty notice of ₹605.5 crore for FY20
- LIC GST penalty order: The matter pertains to the wrong availment and short reversal of input tax credit and interest on late payments.
Life Insurance Corp (LIC) of India received a goods and services (GST) demand penalty order of ₹605.5 crore for fiscal 2019-20 (FY20). According to a regulatory filing by the leading life insurer to the stock exchanges, the order is appealable before the Joint Commissioner of State Tax (Appeals), Mumbai.
‘’The corporation has received a communication/demand order for interest and penalty for Maharashtra,'' LIC said in a regulatory filing. The matter pertains to wrong availment and short reversal of Input Tax Credit (ITC) and interest on late payments. ‘’There is no material impact on financials, operations or other activities of the insurance behemoth,'' added LIC.
According to LIC's exchange filing, the detailed break of the GST demand order to the life insurer is as follows:
GST – ₹2,94,43,47,220
Interest – ₹2,81,70,71,780
Penalty - ₹29,44,73,582
Hence, LIC has received a GST notice of ₹294 crore with interest of ₹281 crore and a penalty of ₹29 crore from the Deputy Commissioner of State Tax, Mumbai. In March 2024, the LIC received a demand notice from the Additional Commissioner of Central GST and Central Excise in Jamshedpur for a penalty of about ₹178 crore for short payment of GST for two financial years.
Also Read: LIC Q1 Results: Net profit rises 9% to ₹10,544 crore, VNB margin up 20 bps to 13.9%
LIC also handed over a dividend cheque of ₹3,662.17 crore to Finance Minister Nirmala Sitharaman on Thursday. The cheque was presented by Siddhartha Mohanty, Chief Executive Officer (CEO) & Managing Director (MD) of LIC to the finance minister.
LIC also paid an interim dividend of ₹2,441.45 crore on March 1, 2024, totaling ₹6,103.62 crore in dividends paid to the Centre for the year 2023-24. LIC has an asset base of over ₹52.85 lakh crore.
LIC Q1 Results
LIC reported a rise of nine per cent in consolidated net profit at ₹10,544 crore. India's largest insurer's total income increased to ₹2,10,910 crore during the latest June quarter compared to ₹1,88,749 crore in the year-ago period.
The life insurance behemoth's first-year premium rose to ₹7,470 crore in the June quarter compared to ₹6,811 crore in the year-ago period. LIC earned ₹56,429 crore from renewal premiums as against ₹53,638 crore a year ago.
The state-owned insurer's net profit growth in the June quarter was helped by increasing sales of high-margin non-participating policies and strong growth in its group business. The net income from investments during the June quarter rose to ₹96,183 crore, compared to ₹90,309 crore in the year-ago period.
Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
MoreLess
First Published:29 Aug 2024, 06:02 PM IST
- Top Gainers
- Top Losers
- 52 Week High