Life Insurance Corp. has received a demand order for goods and services tax, interest and penalty amounting to Rs 480 crore from the Maharashtra tax authority for financial year 2020–21.
LIC received a demand order from the Deputy Commissioner of State Tax, Mumbai, for GST dues of Rs 242.2 crore, along with interest of Rs 213.4 crore and a penalty of Rs 24.2 crore. The demand notice was sent due to wrong availment and short reversal of input tax credit, interest on late payments and short payment of tax liability, according to an exchange filing on Thursday.
The order is appealable before the Joint Commissioner of State Tax (Appeals) in Mumbai. There is no material impact on financials, operations or other activities of the corporation, it added.
Earlier on Monday, LIC disclosed a separate demand order from Delhi tax authorities related to excess ITC availed for the same financial year. The demand, issued by the assistant commissioner, Delhi, includes GST dues of Rs 31 crore, interest of Rs 23.1 crore and a penalty of Rs 3.10 crore, totalling Rs 57.3 crore.
Shares of LIC closed 2.04% lower at Rs 741.1 per share on the National Stock Exchange, compared to a 0.01% decline in the benchmark Nifty. The share price has fallen 28.75% in the last 12 months.
Fifteen out of the 20 analysts tracking the insurance company have a 'buy' rating on the stock, four recommend 'hold' and one suggests 'sell', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential downside of 28.4%.
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