In recent news it was reported that LIC is getting GST notification to pay tax at lower rate. Explore further to find out more details. For more details and information about the same you must read the article. Stay tuned for all the insights and new updates.
LIC receives GST notification to pay tax at lower rate
At present, LIC has been asked to pay GST of 10,462, penalty of 20,000 and interest of 6,382, as stated in the regulatory filing. Reportedly, on October 11, 2022, the Life Insurance Corporation of India informed the stock exchanges that it has been issued a GST notice along with penalty and interest amounting to nearly 37,000. However, the notice was issued by the State Revenue Officer which starts in the financial year 2019-20. The state is leading an insurer that was asked to provide an additional amount because it paid tax at a rate of 12 percent instead of 18 percent on certain invoices. According to the notification, LIC would now pay GST of 10,462, penalty of 20,000, and interest of 6,382, which comes to 36,844. In the meantime, LIC will add a notice without materially affecting its monetary conditions, operations and other activities.
However, there is one development that comes days after LIC received a notice from the Income Tax department for a penalty of Rs 84 crore. However, the notification relating to FY13, FY19 and FY20 was issued on September 29, 2023, which the company noted on October 3. On October 11, 2023, shares on the stock exchange were traded according to the green signal. Moreover, the scrip was valued at 638.90 apiece on the BSE at 2:54 pm, up 0.5 percent from the previous day’s close. It was reported that last month in September, LIC received another GST notice of 290 crores from Bihar Revenue Affairs. However, this included a tax demand of Rs 166.75 crore, with interest of Rs 107.5 crore and a penalty of Rs 16.67 crore. Further, the insurer has informed the stock exchanges that it will file an appeal in the GST Appellate Tribunal against the said order within the given time limits as well.
Allegedly, LIC’s weak performance continued in September. According to data generated by the Life Insurance Council, LIC reported a 27% decline in new business premiums even as private insurers reported growth and steady activity. Thank you for being a patient reader. As you know, stocks always appreciate.
Categories: Trends
Source: HIS Education