The Bihar tax authority's Rs. 290 billion GST bill will be contested by LIC

 The Bihar tax authority's Rs. 290 billion GST bill will be contested by LIC

LIC prepares to appeal against a huge GST claim totaling more than Rs 290 crore, which includes penalties and interest

The GST Appellate Tribunal will hear an appeal from the Life Insurance Corporation of India (LIC) regarding a Goods and Services Tax (GST) bill issued by the Bihar tax authority that exceeds Rs 290 crore.

In an exchange filing on Friday, LIC revealed that it had been assessed a GST bill totaling more over Rs 290 crore, including interest and penalties.

This is to tell you that on September 21, 2023, the Bihar-Additional Commissioner State Tax (Appeal), Central Division, Patna, issued an order to the Corporation under Section-73(9) of the BGST and CGST Act 2017.

The failure to reverse the Input Tax Credit (ITC) used on sections of policyholder premiums that were not subject to GST was one of the specifics of the infringement.

According to the tax authority's order that was attached to the exchange filing, it also referenced the non-reversal of the ITC on agents' commissions for non-GST leviable components of the premiums and exempted policies.

The tax demand is over Rs 166.75 crore, interest costs are over Rs 107.05 crore, and penalties are over Rs 16.67 crore, for a total of Rs 290,49,22,609.