ICICI Bank and Kotak Mahindra Bank hit with hefty GST demand notices
Private sector lenders ICICI Bank Ltd and Kotak Mahindra Bank Ltd on Thursday (December 28) said they have received demand notices from the Goods and Services Tax (GST) Department for ₹26.8 crore and ₹62.3 lakh respectively.
ICICI Bank said it has received a notice from the Tamil Nadu Goods and Services Tax (GST) Department raising a demand of ₹24.37 crore with a penalty of ₹2.43 crore, according to a stock exchange filing.
“Please note that on December 27, 2023, at 3.32 p.m., the bank has received an order from the Tamil Nadu Goods and Services Tax (GST) Department raising a GST demand of ₹ 24,37,86,372/- and levying a penalty of ₹ 2,43,78,638/-. The bank will be filing an appeal against the said order,” the lender said.
The order stems from an assessment of tax payment under Section 73 of the Tamil Nadu Goods and Services Tax Act, 2017. Further, ICICI Bank has swiftly announced its intention to file an appeal against the order.
Simultaneously, on the same day, Kotak Mahindra Bank found itself on the receiving end of show cause cum demand orders from the assistant commissioner of central goods and service tax (GST) and excise, stationed at Cuttack, Odisha.
The orders levied a cumulative amount of ₹57.20 lakh towards central goods and services tax (CGST), accompanied by applicable interest and a penalty of ₹5.1 lakh under Section 73 of the Central Goods and Services Tax Act, 2017.
Kotak Mahindra Bank swiftly announced its intent to appeal against the orders, citing adequate grounds to support its stance. The bank believes that it can successfully challenge the disallowance of input tax credit (ITC) on certain expenses during the financial years 2017-18 and 2018-19.
“The Bank believes that it has adequate grounds to support its position in the matter and would prefer an appeal against the aforesaid orders, under the applicable laws. The impact of the above order would be limited to the amount of levy payable by the Bank under the aforesaid orders,” the lender said.
Shares of ICICI Bank Ltd ended at ₹1,005.40, up by ₹3.65, or 0.36% on the BSE. Shares of Kotak Mahindra Bank Ltd ended at ₹1,919.90, up by ₹17.30, or 0.91%, on the BSE.