ICICI Bank and Kotak Mahindra Bank Face Hefty GST Demand Notices

ICICI Bank Challenges ₹24.37 Crore Demand Notice with ₹2.43 Crore Penalty in Tamil Nadu

In a recent development, ICICI Bank revealed that it has received a demand notice from the Tamil Nadu Goods and Services Tax (GST) Department amounting to ₹24.37 crore, accompanied by a penalty of ₹2.43 crore. The notice, issued under Section 73 of the Tamil Nadu Goods and Services Tax Act, 2017, has prompted the bank to swiftly announce its intention to file an appeal against the order.

According to a stock exchange filing made by ICICI Bank, the demand notice is a result of a thorough assessment of tax payments. Despite the substantial amount involved, the bank remains confident in challenging the order and is determined to defend its position through the appropriate legal channels.

Kotak Mahindra Bank Faces ₹57.20 Lakh Demand Notice with ₹5.1 Lakh Penalty in Odisha

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, totaling ₹57.20 lakh towards central goods and services tax (CGST), come with applicable interest and a penalty of ₹5.1 lakh under Section 73 of the Central Goods and Services Tax Act, 2017.

Undeterred, Kotak Mahindra Bank promptly announced its intent to appeal against the orders, citing adequate grounds to support its stance. The bank is particularly focused on challenging the disallowance of input tax credit (ITC) on certain expenses incurred during the financial years 2017-18 and 2018-19.

Despite these challenges, both ICICI Bank and Kotak Mahindra Bank ended the trading day on a positive note. Shares of ICICI Bank Ltd concluded at ₹1,005.40, reflecting an increase of ₹3.65, or 0.36%, on the BSE. Similarly, shares of Kotak Mahindra Bank Ltd ended at ₹1,919.90, up by ₹17.30, or 0.91%, on the BSE. The banks remain optimistic about successfully contesting the demand notices and penalties through the legal appeals process.