LIC Share Price Down on GST Demand Order
Life Insurance Corporation (LIC) shares fell on Tuesday, February 25, 2025, following the announcement of a Goods & Service Tax (GST) demand order from Delhi State. The stock reached an intraday low nearing its 52-week low.
According to reports, LIC received a communication for approximately Rs 57.28 crore, which includes GST, interest, and penalties.
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The Life Insurance Corporation of India (LIC) headquarters in Mumbai.
In an exchange filing, LIC stated that the demand order is for the 2020-21 fiscal year, comprising approximately Rs 31.04 crore in GST, Rs 23.13 crore in interest, and Rs 3.10 crore in penalties. However, LIC clarified that the order is subject to appeal before the Commissioner (Appeals), Delhi.
“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,” LIC stated.
LIC Q3 Results
Despite the GST demand, LIC reported robust financial results for the October-December quarter of FY25 (Q3FY25). Net profit increased by 17 per cent year-on-year (Y-o-Y) to Rs 11,056.5 crore. This surge was driven by a 20.8 per cent Y-o-Y decrease in expenses, totaling Rs 14,415.8 crore, mainly due to lower employee-related expenses. The management expenses ratio improved to 13.5 per cent compared to 15.5 per cent in the same period last year.
About LIC
LIC is the largest public sector insurance company in India, wholly owned by the Government of India. Established in 1956, it was created by merging 154 life insurance companies. LIC offers a wide range of insurance plans, including endowment, money-back, and pension policies. The company also provides policy loans and operates a 24/7 call center. With a market capitalization of Rs 4,81,743 crore (BSE), LIC is a significant player in the Indian financial market.
