Life Insurance Corporation of India (LIC) has received a GST demand exceeding ₹2,370 crore from the Maharashtra State Tax Department. The notice, issued by the Deputy Commissioner of State Tax in Chembur, was received on December 10, 2025, and pertains to assessments for FY 2021–22 to FY 2023–24.
Breakdown of the Demand
According to LIC’s exchange filing, the order includes:
- ₹1,382.52 crore in GST
- ₹849.56 crore in interest
- ₹138.25 crore in penalties
The assessment cites excess input tax credit (ITC) claimed by LIC over the three-year period. The insurer has acknowledged the communication and is currently evaluating the order.
Appeal Option
LIC stated that the order is appealable before the Commissioner (Appeals) in Mumbai. The insurer clarified that the demand will not impact its operations or service delivery. Next steps will be based on its internal review and the statutory appeal process.
Other Updates on LIC
Separately, CNBC-TV18 reported that LIC’s plan to acquire a strategic stake in a health insurance company is currently on hold, with focus shifting to the government’s upcoming offer for sale (OFS).
Summary
LIC has received a GST demand of over ₹2,370 crore from the Maharashtra tax authorities for FY 2021–24, linked to alleged excess ITC claims. The insurer plans to review and may appeal the order, which does not impact its business operations. Meanwhile, LIC’s proposed health insurance stake purchase has been paused as attention turns to the government’s planned OFS.
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