LIC Receives ₹478 Crore GST Demand Notice from Maharashtra Tax Authority

February 27, 2025 

The Life Insurance Corporation of India (LIC) has received a demand order from the Deputy Commissioner of State Tax, Mumbai, regarding unpaid Goods and Services Tax (GST), interest, and penalties for the financial year 2020-21. The total demand amounts to ₹478.4 crore, including:

GST: ₹242.3 crore

Interest: ₹213.4 crore

Penalty: ₹22.4 crore

Reason for the Tax Demand

The notice cites wrong availment and short reversal of Input Tax Credit (ITC), interest on late payments, and short payment of tax liability as the key violations. LIC received the official communication on February 27, 2025.

Appeal and Financial Impact

LIC has the option to appeal the demand before the Joint Commissioner of State Tax (Appeals), Mumbai. The corporation has clarified that while the demand is significant, it does not materially impact LIC’s financial position, operations, or other business activities.