LIC faces ₹2,370-cr GST demand from Maharashtra; health insurance expansion paused

• LIC faces a GST demand of over ₹2,370 crore from the Maharashtra State Tax Department.
• The demand includes GST, interest, and penalties for FY2021-22 to FY2023-24, alleging excess input tax credit claims.
• LIC plans to appeal the order, stating it will not materially impact its operations.
• LIC has paused its health insurance expansion plans to prioritize the government's upcoming Offer For Sale (OFS).
• The OFS aims to reduce the government's 96.5% stake in LIC to the mandated 90% by May 2027.

Why It Matters: LIC faces a huge tax demand and pauses key strategic expansion plans.