LIC gets ₹57.2 crore GST notice from Delhi
The Delhi State Government has sent a ₹57.2 crore GST notice for excess Input Tax Credit (ITC) availed by the Life Insurance Corporation of India (LIC) in the financial year 2020-21. The notice contains GST of ₹31.04 crore, interest of ₹23.13 crore, and penalties of ₹3.10 crore.
The problem is due to LIC reportedly claiming excess ITC than it was allowed under GST laws. In spite of the huge tax demand, LIC has made it clear that this notice does not have a material effect on its financial position, operations, or other activities.
After the announcement, the stock of LIC closed 0.69% down at ₹775.90 on Feb 24, 2025. The corporation may appeal to the Commissioner (Appeals) in Delhi in case it opts to challenge the demand.
This comes at a time when LIC is proactively ensuring its tax compliance and adherence to government policies. Such tax litigations have been witnessed in various industries, particularly over ITC claims under GST. The decision of LIC’s appeal, if it files one, will decide whether the tax burden stands or is revised in its favor.
