LIC Receives ₹105.42 Crore GST Demand Notice

Life Insurance Corporation of India (LIC), the country’s largest insurer, has been issued a demand notice amounting to ₹105.42 crore for the alleged short payment of Goods and Services Tax (GST). The notice, covering multiple states, includes interest and penalties for a period spanning seven financial years. LIC has acknowledged the communication in a regulatory filing and stated that it has the option to appeal the order.

Details of the Demand Notice

LIC received the demand notice on 5 February 2025, which pertains to GST liabilities for the financial years 2017-18 to 2023-24. The notice has been issued by tax authorities across multiple states, seeking additional payments along with interest and penalties. The corporation clarified that the order is appealable before the Commissioner (Appeals), Lucknow, and that necessary steps will be taken in accordance with the legal framework.

Impact on LIC’s Financials and Operations

Despite the sizeable tax demand, LIC has assured stakeholders that there will be no material impact on its financial position, operations, or activities. The company remains confident in managing its regulatory obligations and compliance measures. While the demand includes financial implications, LIC has maintained that its overall stability and business performance will not be affected.

LIC Share Performance

As of February 06, 2025, at 10:30 AM, the shares of LIC are trading at ₹838.35 per share, reflecting a decline of 0.51% from its previous day’s closing price. The stock has experienced a decline of 4.28%. While over the year, it has registered a decline of 18%. The stock has a 52-week high and low of ₹1,222.00 and ₹805.00 per share respectively.

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 own 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.