LIC Challenges ₹1.8 Crore GST Demand in Karnataka
The Life Insurance Corporation of India (LIC) has filed an appeal with the Commissioner (Appeals), Karnataka State, contesting a significant GST demand order issued by the Deputy Commissioner of Karnataka.
Key Details of the Case
Demand Summary:
GST Liability: ₹1,83,32,790/-
Interest: ₹1,79,19,690/-
Penalty: ₹18,33,280/-
Total Amount: ₹3.8 crore approximately.
Financial Year Involved: FY 2019-20
Reason for Demand:
Short Declaration of Outward Liability: Underreporting of GST on outward supplies.
ITC on Blocked Credit (Section 17(5)): Allegedly ineligible input tax credit claimed.
Timeline:
The demand order was issued on August 28, 2024.
Compliance with SEBI Regulations
LIC disclosed the appeal under Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, ensuring transparency with its stakeholders.
Implications and Next Steps
- Financial Impact:
If upheld, the demand could significantly affect LIC’s financial position for FY 2019-20.
- Legal Action:
LIC is expected to present evidence to refute the claims of short declaration and ITC violations.
- GST Compliance Scrutiny:
The case emphasizes the importance of accurate outward liability reporting and strict adherence to blocked credit provisions under Section 17(5).
Conclusion
LIC’s appeal reflects its intent to challenge the findings and protect its financial interests. This case highlights the increasing focus of GST authorities on compliance and the complexities organizations face in navigating tax regulations.
