Shares of Life Insurance Corporation of India Limited fell a marginal 0.3 percent to Rs 648 in early trade on September 25 after the company received a Goods and Services Tax receipt, including interest and penalty, of over Rs 290 crore from Bihar state tax officials.
"In the said order, the authority has demanded GST along with interest and penalty," LIC said in an exchange filing on September 22. "Corporation shall file an appeal before the GST Appellate Tribunal and against the said order within prescribed timelines," the exchange disclosure added.
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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 290 crore.
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 agent's commission on the item non-leviable to GST on the portion of the premium and the exempted policies."
Last week, LIC announced that it has divested a 2 percent stake in Sun Pharmaceuticals Industries. With this, the stake in the pharmaceutical company has come down from 5. percent to 3 percent.
The transaction was done through the open market between July 22 and September 13 at an average floor price of Rs 973.80 per share.
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