The Telangana Tax Authority issued GST notice of Rupees 138 crores to Life Insurance Corporation of India (LIC).
The “demand order-cum-penalty notice” pertained to fiscal year 2017-18 and he 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.
It has been also clarified that the demand cum SCN alleged short payment under reverse charge mechanism” and claiming “excess input tax credit”.
Despite the substantial amount involved, LIC reassures stakeholders that the GST notice has no material impact on its financials, operations, or other activities. However, at the time of disclosure, LIC’s shares experienced a drop of Rs 11.10 or 1.42 percent from the day’s high. The closing bell saw the scrip valued at Rs 770 on the BSE, reflecting a 0.49 percent decrease compared to the previous day’s close.