By Admin 
LIC GST Demand Notice: Life Insurance Corporation of India (LIC) has received a demand notice for Goods and Services Tax (GST) for the financial year 2021-22 to 2023-24 from the Maharashtra State Tax Department. This includes GST of Rs 1,382.52 crore, interest of Rs 849.56 crore and penalty of Rs 138.25 crore.
The department claims that LIC had claimed excess Input Tax Credit (ITC) during this period. According to the exchange filing, this notice communication was issued by the Deputy Commissioner of State Tax, Chembur, Mumbai and was received by LIC on December 10, 2025.
What did LIC say?
LIC said that an appeal can be filed against this decision before the Commissioner (Appeals) in Mumbai. It also confirmed that although this demand notice will have a financial impact on the company, it will not have any significant impact on its operations or ongoing activities. However, this is not the first time that LIC has received a huge tax notice, in fact LIC has faced this before also.
Notices have been received earlier also
Earlier, the company had received a GST demand notice of Rs 479.88 crore for the financial year 2020-21 and another notice of Rs 600 crore from the Maharashtra state tax authorities. The company has also received a communication/demand order for interest and penalty for Maharashtra from the Deputy Commissioner of State Tax, Mumbai on February 27. The company said that the demand notice is related to misuse of Input Tax Credit (ITC) and less reversals, interest on late payment and less payment of tax liability.
What will be the impact on investors?
Experts believe that this GST demand notice may definitely have an impact on investor sentiments in the short term, but considering its large-scale business, strong balance sheet, stable business model and investors’ trust in it, it can be said that it will not have a long-term impact. On top of that, LIC has also said that it will take legal action against it. Of course, this will raise questions about the company’s reputation, but its financial impact will be limited.
status of shares
So far this year, the share price of Life Insurance Corporation of India (LIC) has fallen by 4.23 percent. On Wednesday also, a decline of 0.23 percent was recorded in its shares. With this it closed at Rs 858.95.