Life Insurance Corporation (LIC) of India has received a Goods and Services Tax (GST) demand and penalty order amounting to ₹605.5 crore for the fiscal year 2019-20 (FY20). According to a regulatory filing by the insurance giant, the order is subject to appeal before the Joint Commissioner of State Tax (Appeals), Mumbai. The demand pertains to the wrong availment and short reversal of Input Tax Credit (ITC), along with interest on late payments. LIC assured that there is no material impact on its financials or operations due to this order.
The breakdown of the GST demand is as follows:
- GST: ₹294 crore
- Interest: ₹281 crore
- Penalty: ₹29 crore
This demand follows a previous notice in March 2024 from the Additional Commissioner of Central GST and Central Excise, Jamshedpur, for a penalty of ₹178 crore related to short payment of GST over two fiscal years.
On a more positive note, LIC presented a dividend cheque of ₹3,662.17 crore to Finance Minister Nirmala Sitharaman, following an interim dividend of ₹2,441.45 crore paid in March 2024. The insurer’s total dividend payment to the Centre for the year 2023-24 stands at ₹6,103.62 crore.
LIC’s Q1 results for the June quarter of 2024 showed a 9% rise in consolidated net profit, reaching ₹10,544 crore. The growth was driven by increased sales of high-margin non-participating policies and robust performance in its group business. The state-owned insurer also reported a rise in first-year premiums and net income from investments, reflecting its strong financial health and strategic growth initiatives.
