LIC gets notice to pay Rs 806 crore

Country’s biggest insurance player the public sector Life Insurance Corporation (LIC) has been served a notice to pay Rs 806 crore.

As soon as the news came out on the second day of the year, the shares of the company registered a sharp decline at the bourses.

Life Insurance Corporation of India told the stock exchange filing that it has received notice of about Rs 806 crore for the financial year 2017-18. After this, as soon as the market opened on Tuesday, LIC Share started falling and it slipped by about 2 percent. However, the company has refused to give it and is preparing to appeal against the notice.

In the information given to the stock exchange, LIC said that it has been sent a GST notice of Rs 806 crore by the Deputy Commissioner of State Tax, Mumbai. This includes Rs 365.02 crore GST and Rs 404.7 crore fine as well as interest of Rs 36.5 crore. The company is accused of violating non-reversal rules of input tax credit. According to the notice, the company is accused of violating non-reversal rules of input tax credit.

It has been told in the stock exchange filing by LIC that the company is preparing to file an appeal against this GST notice. However, the company has assured that due to this notice there is no impact of any kind on the financial, operational or other activities of LIC.

The immediate impact of the news of receipt of GST notice was seen on LIC shares. Amidst the fall in the stock market on Tuesday, the second trading day of the week, LIC shares are also trading in the red.

The company's share opened at the level of Rs 853.80 at 9.15 am when the market opened and within an hour of trading it slipped to the level of Rs 839. Till the time of writing the news, the company with market capitalization of Rs 5.34 lakh crore was trading at the level of Rs 843.75, slipping by 1.75 percent.