LIC share price down 3% on GST demand order worth Rs 57 crore; details here

The fall in the LIC share price came after the company announced that it has received a communication/demand order for Goods & Service Tax, Interest and penalty for Delhi State worth about Rs 57.28 cr

LIC share price: Life Insurance Corporation (LIC) shares were in focus on Tuesday, February 25, 2025, as the scrip dropped as much as 2.51 per cent to hit an intraday low of Rs 756.35, nearing its 52-week low of Rs 745.15.

 

The fall in the LIC share price came after the company announced that it has received a communication/demand order for Goods & Service Tax, Interest and penalty for Delhi State worth approximately Rs 57.28 crore.

 

In an exchange filing, LIC 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 Delhi State.”

 

LIC has received demand for GST, interest and penalty notice for FY 2020-21. The GST includes Rs 31,04,35,201, interest of Rs 23,13,21,002, and penalty of Rs 3,10,43,519.

 

However, LIC said that the order is appealable 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 said in a statement.

 

LIC Q3 results

 

A drop in expenses helped LIC report a 17 per cent year-on-year (Y-o-Y) increase in net profit at Rs 11,056.5 crore in the October-December quarter of FY25 (Q3FY25). The company’s expenses plunged 20.8 per cent Y-o-Y to Rs 14,415.8 crore, aided by a nearly 30 per cent drop in employee-related expenses. The expenses of management ratio stood at 13.5 per cent, against 15.5 per cent in the same quarter last year. READ MORE

 

About LIC

 

The Life Insurance Corporation of India (LIC) is the largest public sector insurance company in India, fully owned by the Government of India. Established in 1956, LIC was formed by the merger of 154 life insurance companies, 16 foreign companies, and 75 provident companies. 

 

Headquartered in Mumbai, LIC offers a diverse array of insurance plans, including endowment, money-back, term assurance, pension, unit-linked, group, child, and health insurance policies. 

 

Additionally, it provides policy loans to customers. The company also operates a 24/7 call centre offering support in English, Hindi, and eight regional languages. 

 

Furthermore, LIC’s life insurance premiums qualify for tax deductions under income tax and wealth tax, providing additional financial benefits to policyholders.

 

The market capitalisation of LIC is Rs 4,81,743 crore, according to BSE. The company falls under the BSE 200 category. 

 

At 11:23 AM, LIC share price was trading 1.86 per cent lower at Rs 761.50 per share. In comparison, BSE Sensex was trading 0.21 per cent higher at 74,612.57 levels.