Life Insurance Corporation of India (LIC) has disclosed receiving a substantial Goods and Services Tax (GST) demand, along with interest and penalty, totaling Rs 605.58 crore. The GST notice was issued by the Deputy Commissioner of State Tax in Mumbai, according to an exchange filing by LIC. "There is no material impact on financials, operations or other activities of the corporation," the state run insurer said in the filing.
The demand for the fiscal year 2019-20 is broken down as follows. GST amounting to Rs 2,94,43,47,220, interest of Rs 2,81,70,71,780, and a penalty of Rs 29,44,73,582. Despite the hefty demand, LIC assured that there would be no significant impact on its financials, operations, or other activities.
In a separate notice on Wednesday, LIC also received another GST demand order from the Deputy Commissioner, DGSTO-5, Bengaluru, Karnataka. This order, amounting to Rs 38.09 crore, includes GST of Rs 1,83,32,790, interest of Rs 1,79,19,690, and a penalty of Rs 18,33,280.
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This follows a series of tax disputes for LIC, including a Rs 794 crore GST demand for FY19, against which LIC has filed an appeal before the Joint Commissioner of State Tax, Mumbai.
Shares of LIC closed at Rs 1069.65 apiece, down 1.39 per cent, on the BSE on Thursday.
On the other hand, Vodafone Idea Ltd. (VIL) is facing a similar situation as the GST office in Patna ordered the company to pay Rs 15.19 crore, along with a penalty of Rs 1.51 crore, for allegedly availing input tax credit for which it was not eligible during FY20 and FY21. The Joint Commissioner for CGST and Central Excise in Patna confirmed the demand under the Central Goods and Services Tax Act, 2017.
Vodafone Idea has expressed its disagreement with the order and announced plans to pursue appropriate legal actions.
Both companies have stated that they will contest the respective orders, signaling potential legal battles ahead.