Life Insurance Corporation of India (LIC) announced on Monday that it has received a demand notice of approximately Rs 57.2 crore from the tax authorities for excess Input Tax Credit (ITC) availed during the financial year 2020-21. The communication, issued by the Assistant Commissioner in Delhi, addresses the alleged excess ITC claimed by the company.
According to a regulatory filing by LIC, the demand is broken down into three components: Goods and Services Tax (GST) amounting to Rs 31.04 crore, interest of Rs 23.13 crore, and a penalty of Rs 3.10 crore.
Despite the significant sum, LIC assured that the demand would not have any material impact on its financials, operations, or other activities. The corporation stated that it is taking the necessary steps to resolve the issue with the tax authorities and ensure compliance.
This development comes as part of ongoing efforts by tax authorities to ensure correct claims of ITC under the Goods and Services Tax regime. LIC’s response emphasises that it remains committed to maintaining transparency and adhering to regulatory requirements.
The insurance giant’s market performance and operations are not expected to be affected by the demand, according to the company’s statement.
