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.

Lic India Dividend: Life Insurance Corporation of India (LIC) gave a dividend check of 7,324.34 crore to the Government of India for the business year 2024-25 on Friday (August 29). LIC CEO and Managing Director R Dorawami handed over the check to Union Finance Minister and Corporate Affairs Minister Nirmala Sitharaman. It was approved to the shareholders of the company during the annual general meeting of LIC on 26 August.

SMT @NSITHARAMAN Receives a dividend check of Rs 7,324.34 Crore for fy 2024-25 from Shri R Doraiswamy, MD & CEO – @Licindiaforever, pic.twitter.com/vtanobizrf

– Nirmala Sitharaman Office (@NSITHARAMANFC) August 29, 2025

All these were present on the spot

Senior officials of the Ministry of Finance were present on the occasion including Nagaraju M. and Joint Secretary Prashant Kumar Goel, Secretary, Financial Services Department. At the same time, on behalf of LIC, Managing Director Satpal Bhanu, Dinesh Pant, Ratnakar Patnaik and Northern Zone Zonal Manager (Interested) J.P.S. Bajaj was present.

Government’s big stake in LIC

Please tell that the government’s stake in LIC is 96 percent. The government has 6,103,622,781 (610 crore) shares with the government. LIC has announced a dividend to its investors at the rate of Rs 12 per share and in this way the government has been given their share of Rs 7324 crore. LIC is going to do its 69 years soon. The insurance company said that by March 31, 2025, its assets base is Rs 56.23 lakh crore. During this time it was also told that it is currently the largest insurance company in India.

LIC shares

On Friday, LIC shares closed at Rs 853.65. In the last one week, its shares have declined by 4.85 percent. At the same time, in the last one month it has given negative returns of 4.34 percent. This year, LIC shares have slipped up to 4.47 percent. Whereas in the last year, it has fallen by 21.42 percent. However, amidst all this, LIC shares have also given a return of 25.53 percent in the last three years.

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Pahalgam terror attack: The whole country is angry with the terrorist attack on tourists in Pahalgam, Kashmir and is trying to overcome this pain. Here, the Life Insurance Corporation (LIC) has announced a relaxation in the claim settlement process on Thursday, giving relief to the victims of Pahalgam attack. The LIC issued a statement mourning the death of citizens in the attack and said that they are committed to help the affected fully. LIC said that claim settlement will be expedited to provide financial relief to those victims.

LIC CEO and MD Siddha Mohanty said that the insurance company LIC is going to give a variety of concessions to reduce the difficulties of insurance holders. He said that in place of the death certificate, any evidence in the government record of payment or any compensation from the state government will be considered as a death proof instead of the death certificate.

The statement further said that all kinds of efforts will be made so that the claims of insurance holders can be disposed of as soon as possible and the victim families can get financial relief.

LIC relief
The helpline number has been issued by LIC, LIC said that for the type of claims, you can contact nearby LIC branch, division or customer areas, or also call 022-68276827.

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