LIC confronts Rs 806-crore GST notice from Maharashtra, intends to contest the order

The Life Insurance Corporation of India (LIC) faces a GST notice of Rs 806.3 crore from the Maharashtra deputy commissioner of state tax for compliance-related issues in FY 2017-18. This comprises Rs 365.02 crore of GST dues, Rs 404.7 crore of penalty, and Rs 36.5 crore in interest. LIC, accused of non-compliance with CGST rules and other discrepancies, plans to appeal the order, asserting no significant impact on its financials. This notice adds to the various GST notices LIC has received from different states, including Bihar and Telangana. In October 2023, LIC was fined Rs 36,844 for underpayment of taxes in Jammu & Kashmir, and in December, Telangana issued a notice of Rs 183 crore, including pending dues, penalty, and interest. The demand order for 2017-18 requires LIC to pay Rs 81.2 crore in pending GST dues, along with a penalty of Rs 93.2 crore and interest of Rs 8.1 crore.