Life Insurance Corporation of India disclosed on December 31 that it has received GST demand orders totaling ₹57.52 crore from tax authorities across three states for FY2021-22. The state-owned life insurance giant stated it will file appeals before the appellate authorities of the respective states within prescribed timelines, emphasizing that the financial impact is limited to GST, interest and penalty with no material effect on operations.

State-wise GST Demand Breakdown

The GST demands vary significantly across the three states, with Maharashtra accounting for the largest portion of the total demand.

Details of Individual Orders

Maharashtra Demand

The deputy commissioner of state tax, Mumbai North East, issued the largest demand order citing short payment of tax and input tax credit wrongly claimed. The order came to LIC's knowledge on December 31, 2025, and is appealable before the joint commissioner, state tax (appeals), Mumbai.

Delhi Assessment

The deputy commissioner of GST in Delhi issued an order specifically for input tax credit wrongly claimed. The corporation received this order on December 31, 2025, and can appeal before the commissioner (appeals), Delhi.

Telangana Notice

The assistant commissioner (ST), Ramgopalpet-Ranigunj-I circle, Begumpet division, Hyderabad, issued an order dated December 30, 2025. The notice came to LIC's knowledge on December 30, 2025, and is appealable before the joint commissioner (ST) (appeals), Hyderabad.

Company Response and Market Performance

Life Insurance Corporation of India confirmed that the financial impact remains limited to the GST demands, interest and penalties, with no material impact expected on its operations or other business activities. The company plans to pursue all available legal remedies through the appellate process.

Despite the GST demand news, LIC shares ended positively on December 31, closing at ₹855.10, up by ₹0.69 or 5.85% on the BSE. The market response suggests investors view the demands as manageable given the company's financial position and the availability of appellate options.

Indian government officials conducted roadshows in London last week to assess investor interest for a minority stake sale in General Insurance Corporation of India (GIC). The roadshows represent a significant step in the government's ongoing divestment strategy for the state-owned general insurance company.

Investor Engagement Initiative

The London roadshows provided a platform for government representatives to directly engage with potential international investors and gauge market sentiment regarding GIC's investment prospects. These investor meetings are typically crucial in determining the viability and timing of public offerings or strategic stake sales.

Strategic Divestment Process

The roadshows form part of the government's broader divestment agenda, which aims to reduce its stake in various public sector enterprises while maintaining strategic control. For GIC, this represents a minority stake sale, indicating the government's intention to retain majority ownership while bringing in private investment.

Market Assessment

By conducting these roadshows in London, a major international financial hub, the government is tapping into a diverse pool of institutional investors including pension funds, insurance companies, and investment firms. The feedback and interest levels gathered from these sessions will likely influence the government's decision-making process regarding the timing and structure of the potential stake sale.

The roadshows demonstrate the government's proactive approach to market testing before proceeding with formal divestment processes, ensuring optimal market conditions and investor interest before launching any public offering.