Life Insurance Corporation of India (LIC) is challenging a significant GST tax notice amounting to Rs 290.50 crore issued by Bihar’s GST authority. The notice alleges violations, including non-refund of input tax credit derived from policyholders’ premium payments.
As India’s largest insurance company, LIC plans to appeal this tax notice within the stipulated timeframe, as disclosed in the notice submitted to the stock exchange on September 22, 2023. The tax notice was invoked under section 73(9) of both the Bihar Goods and Services Tax (BGST) and the Central Goods and Services Tax (CGST) Act 2017, mandating payment of GST alongside interest and penalty.
Following this development, LIC shares experienced a minor dip, closing at Rs 651.20 on BSE and Rs 652.50 on NSE on Friday.