State-owned Life Insurance Corporation of India (LIC) announced on Monday, February 24, 2025, that it has received a demand order from the Assistant Commissioner, Ward 206, Zone 11, Delhi, seeking a total of ₹57.28 crore in Goods & Services Tax (GST), interest, and penalties for the financial year 2020-21.
According to LIC’s regulatory filing, the notice includes:
The demand order cites the excess Input Tax Credit (ITC) availed by the corporation. LIC clarified that the order is appealable before the Commissioner (Appeals), Delhi and stated that it is assessing its legal options.
LIC assured that the demand would not have a material impact on its financials or operations. “The financial impact of the demand is to the extent of the GST, interest, and penalty. There is no material impact on the financials, operations, or other activities of the Corporation,” LIC said in its statement.
Despite the GST demand, LIC demonstrated resilience in its financial performance for Q3FY25. The company reported a 21% year-on-year (YoY) decline in new business premium (NBP) to ₹43,075 crore, though it surpassed CNBC-TV18’s estimate of ₹42,406 crore.
The PSU insurer posted a 17% YoY increase in standalone net profit, rising to ₹11,056 crore from ₹9,444 crore in the same period last year.
However, total income declined to ₹2,01,994 crore from ₹2,12,447 crore in Q3FY24, primarily due to lower investment and policyholder-related earnings.
On February 25, 2025, LIC share price traded 1.57% lower at ₹763.70 at 9:33 AM (IST). LIC’s share price reached a 52-week high of ₹1,221.50, and a 52-week low of ₹745.15. As per BSE, the total traded volume for the stock stood at 0.12 lakh shares with a turnover of ₹94.63 lakhs.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their research and assessments to form an independent opinion about investment decisions.
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Published on: Feb 25, 2025, 9:45 AM IST
Dev Sethia
Dev is a content writer with over 2 years of experience at Business Today, Times of India, and Financial Express. He has also contributed stories in Hindi for BT Bazaar and Khalsa Bandhan News Paper. A journalism postgraduate from ACJ-Bloomberg, Dev enjoys spending his spare time on the cricket pitch.
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