Life Insurance Corporation of India : The Bihar Additional Commissioner State Tax issued an order under the BGST and CGST Act 2017 requiring Life Insurance Corporation of India to pay Rs 290 crore in goods and service tax (GST), plus interest and penalties. According to the state-owned insurance company, the Corporation would appeal the aforementioned ruling before the GST Appellate Tribunal within the required time frames.
The 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 are among the violations that the company is alleged to have committed.
The breakdown of the entire sum asked, Rs 2,90,49,22,609, is as follows: Rs 16,67,57,899 for penalty; Rs 1,07,05,85,715 for interest; and Rs 1,66,75,78,995 for GST.
At Rs 651.20 per share, Life Insurance Corporation of India’s share price last finished 0.51% down. The stock’s 52-week high and low are respectively Rs. 754.40 and Rs. 530.20. The corporation has announced an increase in the Corporation’s ownership in “GUJARAT GAS LTD.” from 4.981% to 5.012% of the Company’s paid-up capital.
For the quarter that ended in June 2023, LIC’s net profit increased by a factor of five to Rs 9,544 crore from Rs 683 crore in the corresponding quarter the previous year. When compared to the same period last year, the company’s net premium income remained practically unchanged, coming in at Rs 98,363 crore in the reporting quarter.
Sequentially, net profit dropped from Rs 13,428 crore reported in the previous quarter by 29%.
LIC Receives Order Demanding GST