LIC Receives ₹479.88 Crore GST Demand Order from Mumbai Tax Authorities

State-owned insurer Life Insurance Corporation of India (LIC) announced on Thursday (February 27) that it has received a Goods and Services Tax (GST) demand order from the Deputy Commissioner of State Tax, Mumbai, for the financial year 2020-21. The total demand, including GST, interest, and penalty, amounts to ₹479.88 crore.

Breakdown of GST Demand

The total demand comprises:

• ₹242.23 crore in GST
• ₹213.43 crore in interest
• ₹24.22 crore as penalty

The notice has been issued on the grounds of alleged wrong availment and short reversal of input tax credit (ITC), interest on late payments, and short payment of tax liability.

GST Order Details 

In a regulatory filing, LIC stated, “This is to inform that the Life Insurance Corporation of India (the Corporation) has received communication/ demand order for Goods & Service Tax, Interest, and Penalty for Maharashtra State. The order is appealable before the Joint Commissioner of State Tax (Appeals), Mumbai.”

LIC Assures No Material Impact on Financials or Operations

Despite the significant tax demand, LIC has assured stakeholders that the demand does not have any material impact on its financials, operations, or other activities.

“The financial impact of the demand is to the extent of the GST, interest, and penalty. There is no material impact on financials, operations, or other activities of the Corporation,” LIC clarified.

LIC is expected to appeal the order before the appropriate authorities, and further developments on the matter will be closely monitored by investors and industry stakeholders.

Stock Performance 

On February 28, 2025, LIC share price traded 0.49% lower at ₹737.50 at 9:56 AM (IST). LIC’s share price reached a 52-week high of ₹1,221.50 and a 52-week low of ₹729.00. As per BSE, the total traded volume for the stock stood at 0.35 lakh shares with a turnover of ₹2.56 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.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.