New Delhi: The Life Insurance Corporation of India (LIC), the country’s largest life insurer, disclosed on Monday that it has been slapped with a demand notice of Rs 806 crore by the Maharashtra tax department for allegedly underpaying the Goods and Services Tax (GST) for the financial year 2017-18.
According to a regulatory filing by LIC, the notice was received on December 31, 2023, and it relates to the collection of GST, along with interest and penalty, for the period from July 1, 2017 to March 31, 2018. The notice was issued by the Assistant Commissioner of State Tax, Mumbai.
LIC said that it will challenge the notice before the Commissioner (Appeals), Mumbai, within the stipulated time frame. It also said that the notice will not have any material impact on its financials, operations, or other activities.
LIC is a state-owned insurance company that dominates the Indian life insurance market with a share of over 70% in terms of new business premiums. It offers a variety of life insurance products and services, such as term insurance, endowment plans, pension plans, unit-linked plans, and health insurance, with tax benefits and multiple cover options.
The GST demand notice to LIC comes after several other companies, such as Hindustan Unilever, Nestle, and Tata Motors, also received similar notices from various state tax authorities for alleged GST evasion or underpayment. The notices have raised concerns among the industry players over the interpretation and implementation of the GST rules and regulations.
