LIC Housing Finance Limited has received a significant GST demand and penalty notice from Jharkhand state tax authorities, totaling ₹92.05 lakh. The company disclosed this regulatory development in a recent statement.

GST Demand Details

The Deputy Commissioner of CGST & CE, Ranchi South Division, Jharkhand has issued the demand notice covering the financial years 2018-19 to 2022-23. The total demand comprises two components:

Nature of Alleged Violations

The tax authorities have identified two primary areas of concern in their assessment:

• Determination of tax not paid or short paid during the specified period
• Excess availment of Input Tax Credit (ITC) beyond eligible limits

These allegations relate to the company's GST compliance across multiple financial years, suggesting a comprehensive review by the state tax department.

Company's Response and Impact Assessment

LIC Housing Finance has assessed the financial implications and provided clarity on the operational impact:

The company has explicitly stated that while there is financial impact to the extent of the GST demand and penalty, there is no material impact on the company's operations or other business activities.

Legal Recourse Available

The order issued by the Deputy Commissioner is appealable before the Commissioner (Appeals), Ranchi, Jharkhand. This provides LIC Housing Finance with an opportunity to contest the demand through the established appellate process under GST law.

The company made this disclosure pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency with stakeholders regarding material developments that could affect the company's financial position.

ICICI Prudential Mutual Fund has increased its stake in LIC Housing Finance , crossing the 5% threshold that triggers mandatory disclosure under SEBI regulations. The fund house acquired 12,95,540 shares on December 2, 2025, through secondary market purchases, raising its total shareholding from 4.98% to 5.22% of the company's paid-up capital.

Key Details of the Transaction

Regulatory Compliance

The increase in shareholding beyond the 5% mark has triggered the disclosure requirements under the Securities and Exchange Board of India (SEBI) Substantial Acquisition of Shares and Takeovers Regulations, 2011. ICICI Prudential Mutual Fund has informed the stock exchange about this transaction, adhering to regulatory norms.

Investment Strategy

ICICI Prudential Mutual Fund has stated that this acquisition is purely for investment purposes. The fund house clarified that it does not seek any controlling interest in LIC Housing Finance, emphasizing that the purchase aligns with its investment strategy across various schemes.

Market Context

While this transaction represents a significant holding by a major institutional investor, such movements by mutual funds are common and part of their portfolio management strategies. Investors in LIC Housing Finance and market participants may view this increased stake by ICICI Prudential Mutual Fund as a sign of confidence in the company's prospects.

Conclusion

This transaction highlights the dynamic nature of institutional investments in the Indian equity market. As mutual funds continue to play a crucial role in capital allocation, such stake changes offer insights into the investment preferences of large fund houses.