LIC gets GST notice for paying taxes at lower rate. Details here

livemint.com:

₹37,000. The notice, issued by “State Taxes Officer, Srinagar", pertains to the financial year 2019-20. The state-run insurer has been asked to submit an additional amount as it had paid taxes on certain invoices at the rate of 12 percent instead of 18 percent, as per the notice.

LIC has been asked to pay a GST of ₹10,462, penalty of ₹20,000 and interest of ₹6,382, according to the exchange filing. This adds up to ₹36,844. “The said order is appealable before the Commissioner (Appeals), Jammu & Kashmir," LIC noted, while adding that the notice will have no material impact on its financials, operations or other activities.

The development comes days after LIC said it received notices from the Income Tax department for a penalty amounting to ₹84 crore. The notices, pertaining to FY13, FY19 and FY20, were issued on September 29 and were noticed by the company on October 3, it noted. In September, LIC had received another GST notice of ₹290 crore from the Bihar taxation body.

This included a tax demand of ₹166.75 crore, interest of ₹107.5 crore and penalty of ₹16.67 crore. The insurer, however, had informed the exchanges that it “shall file an appeal before the GST Appellate Tribunal and against the said order within prescribed timelines". In the stock market session on October 11, LIC's shares were trading in the green.