LIC hit with GST demand, penalty from Haryana authorities

On December 9, 2025, Life Insurance Corporation of India (LIC) announced the receipt of a demand order from the additional commissioner, Central Goods and Service Tax Commissionerate, Panchkula, Haryana. The order relates to Goods & Service Tax (GST), interest, and penalties for the financial years 2018-19 to 2022-23.

The total demand includes GST of INR 301,81,981, applicable interest, and a penalty of INR 301,81,981. The alleged violation is a "short-reversal of common ITC under Rule 42." LIC has stated that the order is appealable before the commissioner (Appeals), Panchkula, Haryana.

According to LIC, the financial impact of this demand will be limited to the GST, interest, and penalty amounts. The company expects no material impact on its financials, operations, or other activities as a result of this development.