Shares of Life Insurance Corporation of India slumped 2% on 28 February after the company received a Rs 480 crore GST demand order for Maharashtra State. 

In its regulatory filing, the company said, “This is to inform you that the Life Insurance Corporation of India has received a communication/ demand order for Goods & Service Tax, Interest and penalty for Maharashtra State.”

The company announced receiving a demand order worth Rs 479.88 crore for GST, interest and penalty for fiscal year 2020-21. The GST order is for Rs 242.23 crore, while the interest is Rs 213.43 crore, and the penalty is Rs 24.22 crore. 

Despite the notice, LIC stated that the order could be challenged before the Joint Commissioner of State Tax (Appeals), Mumbai.

The filing added, “The financial impact of the demand is to the extent of the GST, Interest and Penalty. There is no material impact on financials, operations or other activities of the Corporation.”

As India’s largest public sector insurance provider, LIC is fully owned by the Government of India. Established in 1956, the company was formed through the merger of 154 life insurance firms, 16 foreign insurers, and 75 provident companies.

Headquartered in Mumbai, LIC offers a wide range of insurance products, including:

• Endowment, money-back, term assurance, pension, unit-linked, group, child, and health insurance policies
• Policy loans for customers

Additionally, LIC operates a 24/7 customer support centre, providing assistance in English, Hindi, and eight regional languages.

At 1:14 pm, the shares of LIC were trading 0.81% lower at Rs 735.10 on NSE.

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