LIC Faces Rs 57.2 Crore GST Demand for Excess ITC

The Life Insurance Corporation of India (LIC) has been issued a demand notice by tax authorities for Rs 57.2 crore due to excess Input Tax Credit availed in the 2020-21 financial year. The demand includes GST, interest, and penalty. LIC states there will be no impact on its operations.

The Life Insurance Corporation of India (LIC) announced on Monday that tax authorities have issued a demand notice totaling approximately Rs 57.2 crore. The demand involves excess Input Tax Credit (ITC) claimed for the financial year 2020-21.

The notice from the Assistant Commissioner in Delhi outlines a breakdown of the financial implications, which include GST totaling Rs 31,04,35,201, alongside interest and penalty charges of Rs 23,13,21,002 and Rs 3,10,43,519 respectively.

Despite this financial requisition, LIC has assured stakeholders that the notice will not materially impact its financial standing, operations, or other business activities.