The Life Insurance Corporation of India (LIC) was sent with a demand notice for a ₹605.5 crore Goods and Services Tax (GST) penalty for the 2019–20 fiscal year (FY20). The big life insurance has filed a regulatory filing stating that this ruling might be appealed to the Joint Commissioner of State Taxes (Appeals) in Mumbai.
The following are the specifics of the GST demand notice, per LIC’s exchange filing:
• The Mumbai State Tax Commissioner sent LIC a GST notice for ₹294 crore, which includes ₹29 crore in penalties and ₹281 crore in interest.
• In March 2024, the Additional Commissioner of Central GST and Central Excise in Jamshedpur issued LIC an additional GST demand notice, seeking nearly ₹178 crore in penalties for underpaying GST over a two-year period.
Positively, LIC gave Finance Minister Nirmala Sitharaman a dividend check for ₹3,662.17 crore. Chief Executive Officer (CEO) and Managing Director (MD) of LIC, Siddharth Mohanty, presented the check. LIC also announced an interim dividend of ₹2,441.45 crore on March 1, 2024, making the total dividend for the fiscal year 2023–24 that was paid to the federal government ₹6,103.62 crore. LIC possesses assets valued at around ₹52.85 lakh crore.
LIC Q1 Results: At ₹10,544 crore, LIC’s consolidated net profit increased by 9%. The largest insurer in India saw an increase in overall revenue to ₹2,10,910 crore for the most recent quarter of June compared to ₹1,88,749 crore for the same time the previous year.
In the June quarter, the LIC first-year premium was ₹7,470 crore, up from ₹6,811 crore during the same period the previous year. The renewal of premiums yielded ₹56,429 crore, surpassing last year’s figure of ₹53,638 crore.