Life Insurance Corporation of India (LIC) has received a communication regarding a demand order for Goods & Service Tax (GST), interest, and penalty for Karnataka. The total demand includes ₹1,03,78,268 in GST, ₹69,88,466 in interest, and a ₹10,37,827 penalty. LIC has stated that the order is appealable and that the impact is limited to the extent of the GST, interest and penalty.
GST Demand Order Received
LIC has received a demand order related to Goods & Service Tax (GST), interest, and a penalty concerning its operations in Karnataka.
Breakdown of Demand
The demand notice, received on December 26, 2025, comprises the following components:
- GST: ₹1,03,78,268
- Interest: ₹69,88,466
- Penalty: ₹10,37,827
The communication was officially acknowledged by the Corporation on December 29, 2025, at 9:44 a.m.
Violation Details
The demand arises from an alleged claim of Excess Input Tax Credit (ITC).
Financial Impact
LIC has assessed that the financial impact of this demand is limited to the extent of the GST, interest, and penalty amounts. The company maintains that there is no material impact on its financials, operations, or other activities.
Source: BSE
