The Life Insurance Corporation of India (LIC) has received a demand notice from the tax authorities for a short payment of Goods and Services Tax (GST) totaling approximately ₹1.02 crore (101.95 crore) for the financial years 2017-18 to 2021-22. The demand order, which includes interest and penalty, has been issued by the Commissioner (Appeals) at Thane and is appealable. The notice pertains to a specific period of five years. According to LIC, the financial impact of this demand will be limited to the amount of GST, interest, and penalty, which has no material impact on the corporation’s financials, operations, or other activities.
In other words, the demand notice does not affect the overall financial performance or operations of the insurance company. This means that LIC will need to pay the outstanding GST amount, along with interest and penalty, but this will not significantly impact its profitability or ability to operate. The company has made this clear in its regulatory filing, stating that the demand notice will not have any material impact on its financials, operations, or other activities.