Life Insurance Corporation of India (LIC) received a GST demand order from Haryana authorities seeking ₹30.2 million in tax plus an equal penalty amount, totaling ₹60.4 million. The insurer plans to appeal, asserting no material financial impact amid routine state-wise GST scrutiny.
Demand Order Details
LIC disclosed on December 9, 2025, a GST demand notice from Haryana state tax officials for ₹30.2 million (₹3.02 crore) in tax liability, matched by an identical penalty. This follows similar orders from multiple states like Delhi (₹57 Cr), Maharashtra (₹480 Cr), and Jamshedpur (₹185 Cr), often tied to input tax credit disputes or short payments across FY17-24. LIC maintains these have minimal operational effects and are appealable.
Key Highlights
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Demand Breakdown: ₹30.2 Mn tax + ₹30.2 Mn penalty for Haryana GST non-compliances.
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Appeal Path: Order challengeable before Commissioner (Appeals); legal options under evaluation.
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Pattern of Notices: Part of series including ₹105 Cr (multi-state), ₹102 Cr (Thane), with no net financial strain.
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LIC Resilience: Q3FY25 net profit up 17% YoY at ₹11,056 Cr despite notices; shares stable.
Strategic Response
LIC's proactive appeals underscore robust compliance amid GST evolution for insurers post-rate cuts.
Sources: Angel One, Economic Times, Business Standard.