LIC gets order demanding Rs 290.5 crore GST with interest and penalty
Life Insurance Corporation of India has received an order under the BGST and CGST Act 2017 from Bihar Additional Commissioner State Tax demanding Rs 290 crore goods and service tax along with interest and penalty, the company said in a stock exchange filing on Friday.
The company said it intends to file an appeal before the GST Appellate Tribunal and against the said order within prescribed timelines.
Detailing the violations, LIC said it has been charged the amount owing to non-reversal of the ITC availed and utilised on the item non-leviable to GST on the portion of the premium received by the corporation from the policyholder. It is also on the non-reversal of the ITC of the portion of the agent’s commission on the item non-leviable to GST on a portion of the premium and the exempted policies.
LIC in August reported that its standalone net profit for the quarter ended June 2023 rose multifold to Rs 9,544 crore.
The same stood at Rs 683 crore in the same quarter of last year. The net premium income, meanwhile, was flat Rs 98,363 crore in the reporting quarter.
It was Rs 98,351 crore in the year-ago period.
On a sequential basis, net profit fell 29% from Rs 13,428 crore reported in the previous quarter. The net premium income dropped 25% quarter-on-quarter.
Income from investments jumped 30% to Rs 90,309 crore in the quarter under review, compared with Rs 69,571 crore in the corresponding quarter of previous fiscal.
