LIC of India has disclosed receiving a Goods & Service Tax (GST) demand order from Karnataka State authorities totaling ₹1.84 crores for the financial year 2021-22. The insurance giant made this disclosure under Regulation 30 of the SEBI Listing Regulations.

GST Demand Details

The demand order was issued by the Deputy Commissioner, Large Taxpayers Unit-LTU, Bengaluru, Karnataka, and pertains to alleged excess Input Tax Credit (ITC) claims. The total demand comprises multiple components as detailed below:

Timeline and Communication

The company received the official communication from the Karnataka authorities and promptly disclosed this information to the stock exchanges.

Impact Assessment

LIC of India has assessed the financial impact of this demand order and provided the following key details:

Company's Position

The insurance corporation has clarified that while the financial impact of the demand exists to the extent of the GST, interest, and penalty amounts, there is no material impact on the company's financials, operations, or other activities. This suggests that LIC of India views the demand as manageable within its current financial framework.

Next Steps

The demand order is appealable before the Commissioner (Appeals), Karnataka, providing LIC of India with an avenue to contest the allegations of excess Input Tax Credit claims. The company has made this information available on its official website at www.licindia.in for stakeholder reference.

This disclosure demonstrates the company's commitment to transparency and compliance with regulatory requirements, ensuring that investors and stakeholders are kept informed of material developments that could potentially impact the organization.

LIC of India has received a substantial tax demand notice from Maharashtra State tax authorities, with the total demand amounting to ₹2,370.28 crores. The notice was received on December 10, 2025, at 10:18 hours from the Deputy Commissioner of State Tax, Chembur, Mumbai.

Details of the Tax Demand

The demand notice covers the financial years 2021-22 to 2023-24 and comprises three main components. The breakdown of the total demand is presented below:

Nature of Alleged Violation

The tax authorities have alleged that LIC claimed excess Input Tax Credit (ITC) during the specified period. This forms the basis for the GST demand, along with the associated interest and penalty components. The Deputy Commissioner of State Tax, Chembur, Mumbai, issued the demand order under the Goods and Services Tax regulations.

Company's Response and Impact Assessment

LIC has disclosed that the financial impact of the demand is limited to the extent of the GST, interest, and penalty amounts specified in the notice. The company has clarified that there is no material impact on its operations or other activities despite the substantial monetary demand.

The insurance corporation has indicated its intention to challenge the order through the available legal remedies. The demand order is appealable before the Commissioner (Appeals), Mumbai, and LIC is expected to pursue this appellate route.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. LIC has informed both the BSE Limited and National Stock Exchange of India about this development, ensuring transparency with its stakeholders and the investing public.

This development represents a significant regulatory challenge for India's largest life insurance company, though the company maintains that its core operations remain unaffected by this tax demand.