LIC Receives ₹57.28 Crore GST Demand Order from Delhi Tax Authorities

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.

Breakdown of the GST Demand

According to LIC’s regulatory filing, the notice includes:

• GST Demand: ₹31.04 crore
• Interest: ₹23.13 crore
• Penalty: ₹3.10 crore

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’s Reaction on GST Demand

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.

LIC’s Q3FY25 Financial Performance

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.

Stock Performance 

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.

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