LIC Challenges Rs 530-Crore GST Demand Order, Files Appeal With Maharashtra Authority

Life Insurance Corp. of India has filed an appeal with the GST Appellate Authority in Maharashtra against a goods and services tax demand order of Rs 530 crore, which includes interest and penalty, according to an exchange filing on Wednesday.

The GST order, which pertains to fiscal 2020, includes an interest of Rs 257.12 crore and penalty of Rs 24.77 crore, as per the filing.

"The demand order will have no material impact on the financials, operations or other activities of the company," LIC informed the bourses.

The state-run insurer, in a separate regulatory filing, said it will file an appeal with the GST Appellate Authority in Andhra Pradesh against a tax demand order of Rs 40.6 crore. The order, which also pertains to fiscal 2020, includes a penalty of Rs 21.7 crore and interest of Rs 6 lakh.

Earlier, on Nov. 22, LIC filed an appeal before the authorities in Karnataka against a tax demand order of Rs 1.8 crore. In addition to the tax, the order also made the company liable to pay an interest of Rs 1.79 crore and penalty of Rs 18.3 lakh.

LIC Q2 Performance

In the quarter ended Sept. 30, LIC reported a bottom line of Rs 7,729 crore, which was down 3.7% year-on-year as against Rs 8,030 crore in the same period last year.

The company's net premium income grew to Rs 1.2 lakh crore in the July-September period, up 12% from Rs 1.1 lakh crore in the year-ago period. The insurer's gross non-performing assets ratio narrowed to 1.72%, compared to 1.95% in the previous quarter.

Shares of LIC on Wednesday closed 0.98% higher at Rs 916.25 apiece on the BSE, compared to a 0.29% climb in the benchmark Sensex.