'This is to inform that the Life Insurance Corporation of India has received orders from GST authorities for collection of GST, Interest and penalty for Telangana, Maharashtra and Delhi states'.
LICI · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
On the reaction day the stock moved 0.7 pts less than Nifty Midcap 150 and 0.6 pts less than its Life Insurance peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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LIC has received GST demand orders from tax authorities in three states for FY 2021-22, mainly on account of short payment of tax and wrongly claimed Input Tax Credit (ITC). The Maharashtra order is the largest at around ₹49.16 crore (tax + interest + penalty), followed by Delhi at ₹6.40 crore and Telangana at ₹1.96 crore, taking the combined demand to roughly ₹57.5 crore. LIC has stated it will file appeals before the respective appellate authorities within the prescribed timelines. The company has clarified that there is no material impact on its operations or other activities.
The total GST demand of around ₹57.5 crore is small relative to LIC's overall size and the company says it will contest the orders in appeal, so the immediate financial and operational impact is limited. However, if the appeals go against LIC, the final payout (including interest and penalty) could be larger, which is a minor negative overhang.