LIC to challenge Rs 290 cr GST bill issued by Bihar tax authority
LIC gears up to appeal against a hefty GST demand exceeding Rs 290 cr, encompassing penalties and interest
 "LIC to challenge Rs 290 cr GST bill issued by Bihar tax authority")
The Life Insurance Corporation of India (LIC) plans to lodge an appeal with the GST Appellate Tribunal over a Goods and Services Tax (GST) bill exceeding Rs 290 crore, issued by the Bihar tax authority.
In an exchange filing on Friday, LIC disclosed that it had been charged a GST bill that, inclusive of interest and penalties, amounted to more than Rs 290 crore.
“This is to inform that the Corporation has received an order under Section-73(9) of the BGST and CGST Act 2017 from the Bihar- Additional Commissioner State Tax (Appeal), Central Division, Patna on September 21, 2023,” the exchange filing stated.
Details of the violation included failure to reverse the Input Tax Credit (ITC) availed and utilised on non-GST leviable portions of premiums received from policyholders.
Furthermore, it cited non-reversal of the ITC on agents' commissions for non-GST leviable portions of the premiums and exempted policies, according to the tax authority's order attached to the exchange filing.
Furthermore, it cited non-reversal of the ITC on agents' commissions for non-GST leviable portions of the premiums and exempted policies, according to the tax authority's order attached to the exchange filing.
Breaking down the bill, the tax demand stands at over Rs 166.75 crore, interest charges exceed Rs 107.05 crore, and penalties amount to more than Rs 16.67 crore, totalling Rs 290,49,22,609.