The Life Insurance Corporation of India (LIC) on Friday (June 28) said it received a demand order for Goods & Services Tax (GST), along with interest and penalties, from the Superintendent of RANGE-III, Large Taxpayer Unit, Corporate Unit, West Bengal.
Read More: Former Jharkhand Chief Minister Hemant Soren Gets Bail In Land Scam Case
“…this is to inform that the Life Insurance Corporation of India (the Corporation) has received a communication/ demand order for Goods & Service Tax, Interest and penalty for West Bengal State. The order is appealable before the Commissioner (Appeals), West Bengal,” according to a stock exchange filing.
The specifics of the demand include GST amounting to ₹3,59,29,763, a penalty of ₹35,92,976, and applicable interest. The notice pertains to the financial year 2018-19 and alleges an excess claim of Input Tax Credit (ITC).
LIC has announced that the demand order is appealable before the Commissioner (Appeals), West Bengal. Despite the substantial figures involved, LIC has assured stakeholders that there will be no material impact on its financial, operational, or other activities.
Last month, Siddhartha Mohanty Chairman and Managing Director of LIC said the Life Insurance Corporation of India are still “very undervalued.” Mohanty believes that the stock price of LIC will go further higher looking at the improving financial performance of the company.
He added that more factors, other than just strong financials, are needed for the stock price to go up. The government still holds a 96.5% in LIC at the end of the March quarter.
For the March quarter, LIC’s total Annualized Premium Equivalent increased by 11% from last year, while estimates were for a growth of 4%. The value of new business though, declined 2% from last year and VNB margins also narrowed.
Shares of Life Insurance Corporation of India ended at ₹989.05, down by ₹2.75, or 0.28% on the BSE.
