Home Finance LIC Share News: Oh my! LIC receives GST notice of ₹290 crore, creating panic among investors

LIC Share News: Oh my! LIC receives GST notice of ₹290 crore, creating panic among investors

by khushahal vishwakarma
lic

LIC Share News: Every day in India, many types of news come out about the stock market companies, which also impact the share price of that company. Similarly, today there is news regarding the shares of LIC Life Insurance Company of India, if you invest in the stock market then you must read this news.

The share prices of Life Insurance of India i.e. LIC have been seen falling on Monday 25th September. The company’s shares closed at Rs 646.85 with a fall of 0.67% on Monday. The reason for the fall in the share prices of the company is that LIC received a GST notice of ₹ 290 crore from the tax authorities of Bihar state last week.

In this GST notice, the Income Tax authorities have asked LIC to make GST payments along with interest and heavy penalties. This is the reason why LIC’s share prices have fallen by more than half a per cent on Monday, 25th September.

What was LIC’s response to the GST notice?

After receiving notice from Income Tax officials last week, LIC on Friday said that it will take the matter to the GST Appellate Tribunal. LIC has informed in its exchange filing that the tax authorities of Bihar have demanded GST from the company along with interest and penalty.

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In which there is a GST amount of ₹ 166.75 crore, ₹ 107.05 is interest charged on this GST amount and approximately ₹ 16.67 crore is penalty. In this way, LIC company has to pay a total GST of ₹ 290 crore.

Why did LIC get GST notice?

According to the report of tax officials, LIC Company has not returned the input tax credit i.e. ITC received by its policyholders in cases related to the premiums received by their policyholders, which is a violation of a tax rule. Besides, the company has been accused of violating many other tax rules.

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