The Life Insurance Corporation of India received a Goods and Services Tax receipt, including interest and penalty, of over Rs 290 crore from the Bihar state tax officials.
In an exchange filing dated September 22, LIC said that the corporation will file an appeal before the GST Appellate Tribunal.
The tax demand is for over Rs 166.75 crore, the interest on this has been cited as over Rs 107.05 crore and the penalty has been shown as Rs 16.67 crore. All of this totals to Rs 2,90,49,22,609.
The exchange filing stated that the LIC 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.
“In the said order, the authority has demanded GST along with interest and penalty,” read the filing. “Corporation shall file an appeal before the GST Appellate Tribunal and against the said order within prescribed timelines,” it added.
Under the details of the violation committed or alleged to have been committed, the order stated, “Non-reversal of the ITC availed and utilised on the item non-leviable to GST on the portion of the premium received by the corporation from the policyholder and the non-reversal of the ITC of the portion of the agents’ commission on the item non-leviable to GST on the portion of the premium and the exempted policies.”