GST authority imposed penalty of Rs 36844 on LIC, accused of paying less tax
GST officials have imposed a fine of Rs 36844 on Life Insurance Corporation (LIC), the country's largest insurance company. LI said that GST officials have imposed this penalty for short payment of tax. The insurance company has received a notice from Jammu and Kashmir to recover interest and penalty. Earlier, the Income Tax Department had imposed a penalty on LIC.
The GST authority has imposed a fine of Rs 36,844 on Life Insurance Corporation (LIC), the country's largest insurance company.
Today LIC said that GST Authority has imposed this penalty for short payment of taxes.
LIC said in a regulatory filing that the insurance company has received a communication/demand order for GST collection along with interest and penalty for Jammu and Kashmir.
According to the notice dated October 9, 2023, of the State Tax Officer, Srinagar, LIC paid 12 percent GST instead of 18 percent on some invoices.
GST authority has issued a demand order cum penalty notice for 2019-20 in which it is written - GST Rs 10,462, penalty Rs 20,000 and interest Rs 6,382. It said there has been no material impact on the financial, operational, or other activities of LIC.
Let us tell you that before receiving the notice from the GST authority, in the same month, the Income Tax Department had also imposed a fine of Rs 84 crore on LIC.
The Income Tax Department has demanded Rs 84 crore from LIC for three assessment years. However, LIC has now decided to appeal against the penalty imposed by the Income Tax Department.
LIC had then informed that the Income Tax Department has imposed a penalty of Rs 12.61 crore on it for the assessment year 2012-13, Rs 33.82 crore for the assessment year 2018-19, and Rs 37.58 crore for the assessment year 2019-20.
