Fri Feb 28 03:10:00 UTC 2025: ## LIC Faces ₹480 Crore GST Demand from Maharashtra

**Mumbai, February 27, 2025** – Life Insurance Corporation of India (LIC) has received a GST demand order of ₹480 crore from the Maharashtra state government, including interest and penalties. The demand, for the fiscal year 2020-21, totals ₹242.23 crore in GST, ₹213.43 crore in interest, and ₹24.22 crore in penalties. The state alleges improper utilization of input tax credit, inadequate reversals, delayed payments, and underpayment of tax liability.

This is the latest in a series of GST demand orders against LIC. The company previously reported receiving demands from Manipur (₹2.22 crore for FY 2017-18 and 2018-19, citing underpayment of tax and excessive input tax credit availment) and Delhi (₹31.04 crore in GST, ₹23.13 crore in interest, and ₹3.10 crore in penalties for FY 2020-21, also due to excessive input tax credit availment).

LIC stated it will challenge the Maharashtra order before the Joint Commissioner of State Tax (Appeals), Mumbai.

The news sent LIC shares down 2% to ₹741.10 on the BSE, hitting a record low of ₹740 for the day. The company’s market capitalization stands at ₹4.68 lakh crore, with shares down 17% this year and over 30% in the last six months. The government holds a 96.50% stake in LIC as of December 2024.

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