It's something I've heard people (well, guys) say to each other my whole life, but would it have been a recognizable insult back a few hundred years ago? A few thousand years ago?
Other equivalent phrases might include "suck my dick," "you suck," "you cocksucker," &c.
The Oxford English Dictionary says it was first used as coarse slang in the late nineteenth century. My Shorter edition doesn't give a reference, but this might narrow it down for others who could find the first recorded instance.
Very late edit: I just realised that I only answered for English, but the idea is much older. Catullus uses the phrase in Latin (or a rough equivalent), I believe, and I suspect it might be much older.