LIC receives a ruling ordering payment of Rs 290.5 crore GST, plus interest and penalties

25 Sep 2023 , 11:36 AM

According to a stock exchange filing made by Life Insurance Corporation of India on Friday, Bihar Additional Commissioner State Tax has issued an order under the BGST and CGST Act 2017 requesting Rs 290 crore in goods and service tax in addition to interest and penalties.

The business declared that, within the deadlines specified, it would appeal the stated ruling to the GST Appellate Tribunal.

When describing the infractions, LIC stated that it had been charged the sum because the ITC that had been used on the portion of the policyholder’s premium that was not subject to GST had not been reversed.

Additionally, it relates to the non-reversal of the ITC of the agent’s commission for the amount of the premium and the policies that are free from GST.

According to LIC’s August report, its standalone net profit for the three months ending in June 2023 increased significantly to Rs 9,544 crore. In the same quarter of the previous year, the same was Rs 683 crore. In contrast, the net premium income for the reporting period remained flat at Rs 98,363 crore. In the same period a year ago, it was Rs 98,351 crore.

In comparison to the Rs 13,428 crore recorded in the previous quarter, net profit decreased 29% sequentially. Net premium revenue decreased by 25% from one quarter to the next.

In the quarter under review, income from investments increased 30% to Rs 90,309 crore from Rs 69,571 crore in the corresponding quarter of the previous fiscal.

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