Life Insurance Corporation of India (LIC) has received a demand order for Goods & Service Tax (GST), interest, and penalty for the Financial Year 2022-23 from the Additional Commissioner, Central GST & Central Excise, Jamshedpur. The total demand amounts to ₹108.99 crore, comprising GST of ₹99.09 crore and a penalty of ₹9.90 crore. The issue pertains to the Pre-Mature Availment of Input Tax Credit on Reverse Charge Mechanism. LIC has stated there is no material impact on its financials, operations, or other activities as the order is appealable.
Tax Demand Issued to LIC
The Life Insurance Corporation of India (LIC) has been served a communication and demand order concerning Goods & Service Tax (GST), interest, and penalty for the financial year 2022-23. The order was issued by the Additional Commissioner, Central GST & Central Excise, Jamshedpur.
Details of the Demand
The demand pertains to the Pre-Mature Availment of Input Tax Credit on Reverse Charge Mechanism. The total amount demanded includes:
- GST: INR 99,09,87,896/-
- Penalty: INR 9,90,98,790/-
The total value of the demand, including GST and penalty, is approximately ₹108.99 crore.
Company’s Stance
The Corporation has indicated that the order is appealable before the Commissioner (Appeals), Jamshedpur. LIC further stated that the financial impact of this demand is limited to the specified GST, interest, and penalty amounts. There is reported to be no material impact on the financials, operations, or other activities of the Corporation as a consequence of this demand.
The receipt of this communication was on July 30, 2026.
Source: BSE
