The public sector life insurance company has got a big blow. The company got a Goods and Services (GST) penalty order of Rs 605.50 crore for the financial year 2019-20. According to a regulatory filing by the leading life insurance company in the stock exchanges, this order is appealable before the Joint Commissioner of State Tax (Appeal), Mumbai. According to the news of Livemint, LIC said in a regulatory filing that the corporation has obtained a demand order for interest and penalty for Maharashtra. This matter relates to interest on wrong profit and late payment of input tax credit.
Understand what is included in the demand order
According to the news, according to the exchange filing of LIC, as per the GST demand order, LIC has been asked to pay ₹ 2,94,43,47,220 as GST, ₹ 2,81,70,71,780 as interest and ₹ 29,44,73,582 as penalty. LIC has received a GST notice of ₹ 281 crore with interest and ₹ 294 crore from the Deputy Commissioner of State Tax, Mumbai. There is a penalty of 29 crore. In March 2024, LIC received a demand notice from the Additional Commissioner of Central GST and Central Excise in Jamshedpur for a penalty of about 178 crore for short payment of GST for two financial years.
Dividend cheque of ₹3,662.17 crore handed over
According to the news, LIC also handed over a dividend cheque of ₹3,662.17 crore to Finance Minister Nirmala Sitharaman on Thursday. The cheque was presented to the Finance Minister by the Chief Executive Officer (CEO) and Managing Director (MD) of LIC. LIC paid an interim dividend of ₹2,441.45 crore on March 1, 2024, taking the total dividend paid to the Centre for the year 2023-24 to ₹6,103.62 crore. LIC has an asset base of over ₹52.85 lakh crore.
The first year premium of the life insurance company rose to ₹7,470 crore in the June quarter compared to ₹6,811 crore in the year-ago period. LIC earned ₹56,429 crore from renewal premium compared to ₹53,638 crore a year ago.
