LI Network
Published on: October 11, 2023 at 17:14 IST
The GST Authority has imposed a penalty of Rs 36,844 on Life Insurance Corporation (LIC) for underpayment of taxes. LIC announced this development in a regulatory filing.
The penalty is related to the collection of GST in the Jammu & Kashmir state.
This penalty resulted from a notice dated October 9, 2023, issued by the State Taxes Officer in Srinagar. The notice revealed that LIC had paid 12 percent GST instead of the required 18 percent on specific invoices.
As a result, the tax authority issued a demand order that included a penalty notice for the financial year 2019-20.
The breakdown of this demand order is as follows: GST amounting to Rs 10,462, a penalty of Rs 20,000, and interest of Rs 6,382.
LIC has clarified that this penalty will not have a significant impact on its financials, operations, or other activities.