LIC Share Price in Focus; Gets ₹2,370 Crore GST Demand from Maharashtra

Life Insurance Corporation of India (LIC) has received a tax demand of a little over ₹2,370 crore from the Maharashtra State Tax Department.  

The notice was sent by the Deputy Commissioner of State Tax, Chembur, and reached the insurer on December 10, 2025. It relates to the assessments for 2021-22 to 2023-24. 

Details of the Demand 

As per the filing, the order seeks ₹1,382.52 crore (₹1382,51,99,038) in GST, ₹849.56 crore (₹849,56,90,949) in interest and ₹138.25 crore (₹138,25,19,904) in penalties.  

The department has stated that the amount arises from excess input tax credit (ITC) claimed by LIC during the 3 financial years in question. The insurer has acknowledged receipt of the communication and is reviewing it. 

Appeal Route Available 

LIC noted that the order can be appealed before the Commissioner (Appeals) in Mumbai. The company said the demand does not affect its ongoing operations or services.  

Further steps will depend on the outcome of its internal assessment and the appeal process available under the law. 

Other Developments Around LIC 

In separate reporting by CNBC-TV18, LIC’s plan to purchase a strategic stake in a health insurance company has been put on hold for now.  

The shift comes as work progresses on the government’s upcoming offer for sale (OFS), which has become the immediate focus for both the insurer and the Centre. 

Read More: LIC Launches Protection Plus Plan Offering Life Cover and Savings! 

Life Insurance Corporation of India (LIC) Share Price Performance  

As of December 11, 2025, 11:20 am, LIC share price is ₹860.40, a 0.17% increase from the previous closing price. 

Conclusion 

The GST notice places a large financial claim on LIC linked to disputed ITC usage across three financial years. While the company prepares to take the appeal route, its plans have shifted towards supporting the government’s divestment schedule in the months ahead. 

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