LIC shares fall 2% to a 52-week low, hit by 3 GST demand orders in one week

“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 life insurer said in a regulatory filing dated February 27.

It is being charged the ₹480 crore penalty for wrong availment and short reversal of Input Tax Credit (ITC), interest on late payment and short payment of tax liability, the PSU said.

“The order is appealable before the Joint Commissioner of State tax (Appeals), Mumbai,” it added.

The ₹479.88 crore demand notice for FY’21 includes GST worth ₹242.23 crore, interest of ₹213.43 crore and penalty of ₹24.22 crore.

GST demand notice from Manipur State

On Wednesday, February 26, the country’s largest insurance company received a demand of GST, Interest and Penalty notice worth ₹4 crore for FY’18 and FY’19 from Manipur state.

The notice includes a GST of ₹2.22 crore, along with a penalty of the same amount and applicable interest.

The GST demand notice pertains to short payment of tax and excess availment of ITC, LIC said.

GST demand notice from the national capital

On Monday, February 24, the corporation received a GST demand notice of ₹57 crore from Delhi.

The notice is for GST (₹31.04 crore), interest (₹23.13 crore) and penalty (₹3.10 crore). It is concerning the excess ITC it availed in FY’21.

The GST demand notices from Delhi and Manipur are appealable before the Commissioner (Appeals), LIC said.

"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," it said in all the three demand notice regulatory filings.

The stock of LIC was trading in the red at ₹734.95, down 0.83%, at around 2:25 pm on Friday.

Life Insurance Corporation of India has a total market capitalisation of ₹4.65 lakh crore as of February 28, 2025, on the NSE.