The life insurer said that it will file an appeal before the GST Appellate Tribunal and against the order within prescribed timelines.

Under the details of the violation committed or alleged to be 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 policy holder and the non-reversal of the ITC of the portion of the agents commission on the item non-leviable to GST on portion of the premium and the exempted policies.”

The tax demand stood at Rs 166.75 crore, the interest was at Rs 107.05 crore, and the penalty was Rs 16.67 crore. All of this totals to Rs 2,90,49,22,609.

LIC has been providing life insurance in India for more than 65 years and is the largest life insurer in the country.

The state-run life insurer reported a standalone net profit of Rs 9,543.71 crore in Q1 FY24, steeply higher than Rs 682.89 crore recorded in Q1 FY23. Total premium income rose marginally to Rs 98,362.75 crore in the quarter ended 30 June 2023 as against Rs 98,351.76 crore posted in corresponding quarter last year.

Shares of Life Insurance Corporation of India declined 0.48% to Rs 648.05 on the BSE.