LIC Fined Rs 36,844 by GST Authority for Lower Tax Payment

LIC Fined Rs 36,844 by GST Authority for Lower Tax Payment

VoM News Desk | October 11, 2023 | 10:10 PM IST | Breaking News | Follow on Google News

LIC Fined Rs 36,844 by GST Authority for Lower Tax Payment

LIC Fined Rs 36,844 by GST Authority for Lower Tax Payment

The Life Insurance Corporation (LIC) has been fined Rs 36,844 by the GST Authority for underpayment of taxes. The fine comes after the GST Authority issued a communication and demand order for the collection of GST, including interest and penalty, in the state of Jammu & Kashmir, according to a regulatory filing by LIC.

Incorrect GST Payment Rate

The State Taxes Officer in Srinagar, in a notice dated October 9, 2023, has found that LIC paid 12% GST on certain invoices instead of the required 18%. Consequently, the tax authority has issued a demand order, which also includes a penalty notice for the financial year 2019-20. The breakup of the charges is as follows: GST of Rs 10,462, penalty of Rs 20,000, and interest of Rs 6,382.

No Significant Impact on Operations

Despite the fine, LIC has stated that there is no material impact on its financials, operations, or other activities. This development serves as a reminder of the importance of accurate tax compliance and payments in accordance with GST regulations.

VoM News Desk

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