On 24 February 2025, Life Insurance Corporation of India (LIC) received a Goods and Services Tax (GST) notice from the Delhi State Government, demanding a payment of ₹57.27 crore. This notice caused LIC’s shares to dip by 0.69 %, closing at ₹775.90, down from ₹781.30 in the previous market session.
According to a filing with the Bombay Stock Exchange (BSE), the Assistant Commissioner from Ward 206: Zone 11 in Delhi issued the demand for the GST amount. The official statement detailed that the demand includes ₹31.04 crore as GST, ₹23.13 crore in interest payments, and ₹3.10 crore in penalties.
The company clarified in its BSE filing that the demand notice is related to Goods & Service Tax, interest, and penalties, and that the order is appealable before the Commissioner (Appeals) in Delhi. LIC also mentioned that while the demand involves significant sums, it does not foresee any material impact on its financials, operations, or other activities.
It emphasised that the financial effect of the demand is limited to the GST, interest, and penalty amounts but did not indicate any broader consequences for the company’s performance.
Despite this announcement, LIC reassured stakeholders that the situation would not have a major impact on its business, indicating that the matter would be resolved through the appropriate legal and regulatory channels. The timing of the disclosure, which occurred after the market had closed for the day, suggests that the stock price reaction might not fully reflect the situation yet. The overall market sentiment toward LIC’s performance was slightly negative, as reflected in the stock price drop, but the company has asserted that its operations remain unaffected by the GST notice.
This development adds to the ongoing scrutiny of large public sector companies like LIC, which are subject to various regulatory assessments and compliance checks. Given that LIC is one of India’s most prominent insurance providers, such legal notices, while significant, are typically handled within the framework of regulatory appeals. The situation remains fluid, with LIC maintaining confidence that the matter will be resolved without disrupting its overall business trajectory.
Conclusion
While LIC’s receipt of the GST notice led to a slight drop in its stock price, the company remains confident that the issue will be resolved without affecting its overall operations or financial stability. The matter is appealable, and the company assured stakeholders that it will not have a material impact on the business. Consult a GST expert right away from Vakilsearch.
- LIC Receives GST Notice of ₹57.27 Crore from Delhi Government - February 25, 2025
- Himachal Pradesh to Implement FASTag-Based Entry Tax Collection - February 24, 2025
- Govt Tightens OTT Rules After Ranveer Allahbadia Row - February 21, 2025
