LIC Slapped with Rs 36,844 GST Penalty

The GST Authority has levied a penalty of Rs 36,844 on the Life Insurance Corporation (LIC) for a tax underpayment. The corporation received a communication, including a demand order for GST, along with interest and penalty for the state of Jammu & Kashmir. 

According to the notice from the State Taxes Officer in Srinagar dated October 9, 2023, LIC remitted 12% GST instead of the stipulated 18% on specific invoices. Consequently, the tax authority issued a demand order coupled with a penalty notice for the fiscal year 2019-20, totaling GST of Rs 10,462, penalty of Rs 20,000, and interest of Rs 6,382. 

However, LIC assured that this incident will not have a significant impact on the company's financials, operations, or other activities. This occurrence underscores the importance of accurate tax compliance for corporations, highlighting the need for diligent accounting and adherence to tax regulations to avoid penalties and ensure smooth business operations.