Life Insurance Corporation of India (LIC) has confirmed receiving a GST notice amounting to Rs 806 crore, inclusive of interest and penalty. The notice, received on January 1, pertains to a demand order cum penalty for GST relating to the financial year 2017-18.
The insurer disclosed that the demand involves a payment of Rs 365,02,67,702 as GST, coupled with a penalty of Rs 404,77,06,418 and an interest charge of Rs 36,50,35,206, resulting in the total sum of over Rs 806 crore.
LIC stated its intention to contest this order by filing an appeal before the Commissioner (Appeals) in Mumbai within the stipulated timelines. Despite the significant amount involved, the corporation reassured that this development would not materially impact its financials or operations.
LIC indicated that the notice was received citing specific violations, including: "Failure to reverse Input Tax Credit under regulations 42 & 43 of CGST Rules, 2017; Reversal of ITC obtained from Reinsurance; Interest on delayed payment submitted with GSTR-3B; Interest on Advance (Proposal Deposit) Received; Underreported RCM liability in GSTR-9/3B compared to supplier disclosures in GSTR-1."
Preceding this, Zomato disclosed receiving a notice from the Directorate General of GST Intelligence questioning the potential imposition of a tax liability totaling Rs 401.70 crore, alongside interest and penalties from October 29, 2019, to March 31, 2022. This tax assessment was linked to the amount collected by Zomato as delivery charges from its customers. The company contended that it isn't liable for tax payment since the delivery charges are collected on behalf of the delivery partners.
Similarly, it is understood that Swiggy, a competitor food-aggregator platform, has also received a comparable GST notice regarding a tax amount of approximately Rs 350 crore.
