LIC and YES Bank receive tax notices worth 806 cr and 3 cr respectively

Mumbai, Jan 1, 2024

LIC receives Rs 806 crore tax notice for FY18 from Mumbai state tax office

YES Bank gets Rs 3 cr penalty by Tamil Nadu GST dept

Life Insurance Corporation of India (LIC) on Monday informed the exchanges of receiving a tax notice for Rs 806 crore from the Deputy Commissioner of State Tax, Mumbai.

According to the exchange filing, the company received the tax notice for non-reversal of input tax credit availed from reinsurance. The demand order-cum-penalty notice is for the financial year 2017-18. The goods and services tax (GST) charged is for Rs 365 crore with a penalty of Rs 404.77 crore and an interest of Rs 36.5 crore, totaling nearly Rs 806 crore.

The order will not have any material impact on the company’s financials, the filing added.

In October 2023, LIC had filed an appeal with the Bombay High Court against the Income Tax Appellate Tribunal’s decision to give the insurer relief in two tax disputes amounting to Rs 4,993 crore.

Private-sector lender YES Bank on Monday received a tax receipt worth Rs 3.01 crore from the Tamil Nadu goods and services tax (GST) department on December 31. According to the exchange filing, the bank does not expect any material impact on its financial or other operational activities due to the order. Further, the bank said it would pursue legal options against the order.

Recently, the bank had received two separate tax notices from the Bihar GST department for Rs 20,000 and Rs 138,584, respectively, in December.

[The Business Standard]