LIC Receives Order Demanding GST, Interest And Penalty Worth Rs 290.5 Crore

Life Insurance Corporation of India informed via an exchange filing on Friday that it 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 (GST) along with interest and penalty. The state-owned insurance group said that the Corporation will file an appeal before the GST Appellate Tribunal and against the said order within prescribed timelines.

The violations that the company is alleged to have committed include non-reversal of the ITC availed & utilized on the item non-leviable to GST on a portion of the premium received by the corporation from the policyholder and 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.

The break up of the total amount of Rs 2,90,49,22,609 demanded include - Rs 1,66,75,78,995 under GST; Rs 1,07,05,85,715 as interest and Rs 16,67,57,899 as penalty.

The share price of Life Insurance Corporation of India last closed 0.51% lower at Rs 651.20 per share. The stock has a 52-week high and 52-week low of Rs 754.40 and Rs 530.20 respectively. The company recently informed that the Corporation's shareholding in "GUJARAT GAS LTD." has increased from shareholding from 4.981% to 5.012% of the paid-up capital of the Company.

LIC's net profit for the quarter ended June 2023 rose multifold to Rs 9,544 crore compared to Rs 683 crore in the same quarter of last year. During this period, the company's net premium income was almost flat at Rs 98,363 crore in the reporting quarter compared to Rs 98,351 crore in the year-ago period.

On a sequential basis, net profit declined 29% from Rs 13,428 crore reported in the prior quarter.