RBL Bank has received a show-cause notice with a GST demand of more than Rs 173.08 crore for an alleged incorrect Input tax credit claim in the 2022-23 financial year.
“The notice proposes a GST demand of Rs 1,73,08,68,535, including interest and penalty, for the financial year 2022-23, in relation to input tax credit availed by the bank under the separate GST registration obtained for its digital banking business vertical,” RBL Bank mentioned in a regulatory filing.
RBL Bank expressed that it will give a reply to the SCN that the Maharashtra state goods and services tax (GST) authorities have issued.
Based on its assessment, which includes favourable orders received from GST officials in similar cases for 2018-19 and 2019-20, the bank believes that it has sufficient grounds to challenge the matter on its merits.
The bank further stated that, considering its current assessment and the favourable orders received from GST authorities regarding similar matters for the financial years 2018-19 and 2019-20, it does not currently expect this matter to have any significant adverse impact on its financial position, operations, or profitability.
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RBL Bank shares closed at Rs 404.55, an increase of 0.63% over its previous close on the BSE.
