Life Insurance Corporation of India
This is to inform that the Corporation has received a communication/demand order for GST, PEnalty for Uttar Pradesh.
REGULATORY
▼ Concern Flagged
MEDIUM RISK
📅 Filed on BSE: 31 Jul 2026, 07:06 PM IST · BSE ID: 75dc62ca-aac7-4c87-8bfe-9416d4f5d9ee
View Original BSE Filing (PDF)
💡
In Simple Terms
LIC received a government tax bill for INR 109 crore related to input tax credits and will appeal it.
🤖 AI Summary
- LIC received GST, interest, and penalty demand of INR 109.01 crore for FY 2022-23 in Jharkhand.
- The demand is for pre-mature Input Tax Credit availment under the Reverse Charge Mechanism.
- The order is appealable before the Commissioner (Appeals), Jamshedpur.
- LIC states no material impact on its financials, operations, or other activities.
🔢 Key Numbers — exact figures from BSE filing, not rounded
GST Demand
INR 99,09,87,896/-
Penalty Demand
INR 9,90,98,790/-
Total Demand (GST + Penalty)
INR 109,00,86,686/-
🏢 How This Affects the Company
The immediate financial impact is the total demand of GST, interest, and penalty. However, the company has assessed this as not material to its overall financials.
This event introduces a contingent liability and requires the company to pursue an appeal process, representing an operational and financial risk until resolution.
👥 What This Means For Shareholders
✅
Action Required
No immediate action is required from shareholders. Shareholders should monitor the progress of the appeal.
👤
Who Is Affected
All shareholders are indirectly affected due to the potential contingent liability, although management has assessed the impact as non-material.
🔍
Management Signal
Management is signaling a commitment to contesting the demand by pursuing an appeal, indicating confidence in their position or seeking dispute resolution.
For information only. Not investment advice. ForgeUp is not SEBI-registered.
👁 Watch List — track these upcoming events
Appeal status with Commissioner (Appeals), Jamshedpur
Any further communications on the GST demand
Management commentary in future financial results
MEDIUM RISK
Substantial tax demand raised, requiring appeal process and potential financial outflow if unsuccessful.
💡 Investor Takeaway
LIC received a demand for GST, interest, and penalty of INR 109.01 crore for FY 2022-23 in Jharkhand, citing pre-mature ITC availment. The company will appeal and states no material impact.
⚖️ Strengths & Concerns
✅ Positives
- The company stated no material impact on financials, operations, or other activities from the demand.
- The demand order is for a specific fiscal year (FY 2022-23) and relates to a defined tax issue.
⚠️ Concerns
- A GST, interest, and penalty demand of INR 109,00,86,686/- has been raised against the Corporation.
- The penalty component of the demand is INR 9,90,98,790/-, indicating a contravention of tax rules.
📅 Company Track Record
LIC has faced previous tax demands, including an INR 109 Crore GST demand for FY23, an INR 103.31 crore tax contingency for FY 2023-24, and an INR 61.47 crore Income Tax demand for FY 2021-22.
Based on publicly available historical data. For context only.
❓ Frequently Asked Questions
What is the total demand raised against LIC by GST authorities in Jharkhand?
LIC has received a demand order for GST, interest, and penalty totaling INR 109,00,86,686/- for F.Y. 2022-23.
What is the reason for the GST demand against LIC?
The demand is related to the 'Pre-Mature Availment of Input Tax Credit on Reverse Charge Mechanism'.
What is the penalty amount in the demand order received by LIC?
The penalty amount specified in the demand order is INR 9,90,98,790/-.
Will LIC appeal the GST demand order?
Yes, the order is appealable before the Commissioner (Appeals), Jamshedpur, and LIC intends to appeal.
What is the impact of this GST demand on LIC's financials?
LIC has stated that there is no material impact on the financials, operations, or other activities of the Corporation.
Questions based on this BSE filing only. For information purposes.