State-run Life Insurance Corporation of India (LIC) said it has been hit with a substantial demand order from the Maharashtra State Tax Department, seeking more than ₹2,370 crore in GST, interest and penalties for financial years 2021-22 to 2023-24.
According to the exchange filing, the communication was issued by the Deputy Commissioner of State Tax, Chembur, Mumbai, and received by LIC on December 10, 2025.
The demand includes ₹1,382.52 crore in GST, ₹849.56 crore in interest, and ₹138.25 crore in penalties, with authorities alleging that the corporation claimed excess input tax credit (ITC) during the period.
LIC said the order is appealable before the Commissioner (Appeals) in Mumbai and confirmed that while the demand carries significant financial implications, it does not have a material impact on its operations or ongoing activities.
Health insurance expansion paused
CNBC TV 18 recently reported that LIC’s plan to acquire a strategic stake in a health insurance company has been put on hold as the insurer shifts focus to the government’s upcoming offer for sale (OFS), expected to kick off in January.
CNBC TV 18 reported that both LIC and the Centre are prioritising the OFS, which will begin reducing the government’s 96.5% stake to the mandated 90% by May 2027. With divestment now the immediate priority, LIC’s proposed health insurance foray has been deferred for the time being.
