LIC faces ₹480-crore GST demand for FY21

Life Insurance Corporation of India (LIC), the state-owned insurer, announced on February 27, 2025, that it has received a GST demand order for the financial year 2020-21 from the Deputy Commissioner of State Tax, Mumbai. The total demand, including GST, interest, and penalties, amounts to ₹479.88 crore.

The breakdown of the demand includes ₹242.23 crore for GST, ₹213.43 crore for interest, and ₹24.22 crore in penalties. The notice was issued due to alleged wrong availment and short reversal of input tax credit (ITC), along with interest on late payments and short payment of tax liability.

In a regulatory filing, LIC clarified that the demand is appealable before the Joint Commissioner of State Tax (Appeals) in Mumbai. The corporation emphasized that the demand would not have any material impact on its financials, operations, or other activities.

Following the news, LIC's shares closed at ₹741.10, a decline of ₹15.45, or 2.04%, on the BSE.