 "LIC, Life Insurance Corporation")
Life Insurance Corporation of India (LIC) on Monday received a demand order for goods and services tax (GST) collection worth Rs 183 crore, along with interest and penalty, from Telangana.
The tax authority has imposed the penalty on the basis of excess input tax credit claimed under Reverse Charge Mechanism and short payment under Reverse Charge Mechanism order pertaining to transactions during 2017-18.
The state-owned life insurer told the exchanges that the GST amounts to nearly Rs 81.18 crore, penalty worth approximately Rs 93.76 crore, and interest of 8.11 crore, aggregating to around Rs 183 crore.
LIC said the monetary penalty would not have an impact on the financials of the corporation.
In the September-October period of this financial year, the public-sector insurer had received a GST collection demand order worth Rs 37,000 and income tax demand for Rs 84 crore and Rs 166.75 crore.
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Separately, LIC on December 11 had announced to have infused Rs 25 crore into its mutual fund arm – LIC Mutual Fund Asset Management Company -- on a preferential basis.
According to data released by the Life Insurance Council in November, the premium of LIC dropped by 32.86 per cent in November to Rs 16,134.55 crore from Rs 24,032 crore a year ago. The premium of private insurers slipped by 9.33 per cent to Rs 10,360.29 crore from Rs 11,426.73 crore.
Meanwhile, between April and November 2023, LIC posted a 24.20 per cent year-on-year (Y-o-Y) decline in premium to Rs 1.24 trillion from Rs 1.64 trillion. On the other hand, the private sector reported an 11.58 per cent rise in the same period to Rs 87,266.33 crore.
The market share of LIC as of November 2023 inched up to 58.78 per cent after touching a bottom of 57.37 per cent in August. The market share of private life insurers currently stands at 41.22 per cent.
