LIC hit with ₹23.7bn tax demand from Maharashtra state

Life Insurance Corporation of India (LIC) announced on December 10, 2025, that it has received a demand order from the deputy commissioner of state tax, Chembur, Mumbai. The order is for goods and service tax (GST), interest, and penalty related to the financial years 2021-22 to 2023-24.

The total demand amounts to INR 23,70,34,09,891, comprising GST of INR 13,82,51,99,038, interest of INR 8,49,56,90,949, and a penalty of INR 1,38,25,19,904.

The demand order alleges "excess input tax credit (ITC) claimed." LIC stated that the financial impact directly correlates to the demanded GST, interest, and penalty.

The corporation has clarified that despite the significant financial demand, no material impact is expected on its operations or other activities. The order is appealable before the commissioner (appeals), Mumbai.