New Delhi: The Life Insurance Corporation of India (LIC) has received an order under the BGST and CGST Act 2017 from the Additional Commissioner State Tax of Bihar, demanding Rs 290 crore in goods and service tax, along with interest and penalty, ET reported.
LIC stated in a stock exchange communication on Friday that it plans to file an appeal before the GST Appellate Tribunal against this order within the stipulated timelines.
The violations outlined include charges related to the non-reversal of Input Tax Credit (ITC) availed and utilized on components not subject to GST for a portion of the premium received by LIC from policyholders.
Additionally, it pertains to the non-reversal of ITC for a portion of the agent’s commission on components not subject to GST for a portion of the premium, as well as for exempted policies.
In August, LIC reported a significant increase in its standalone net profit for the quarter ending June 2023, rising to Rs 9,544 crore compared to Rs 683 crore in the corresponding quarter of the previous year.
However, the net premium income remained relatively stable at Rs 98,363 crore in the reporting quarter, as opposed to Rs 98,351 crore in the same period last year.
On a sequential basis, the net profit experienced a 29% decline from the Rs 13,428 crore reported in the previous quarter. The net premium income also saw a 25% decrease quarter-on-quarter.
Income from investments witnessed a notable 30% increase, reaching Rs 90,309 crore in the quarter under review, compared to Rs 69,571 crore in the corresponding quarter of the previous fiscal year.