ICICI Bank Ltd and Kotak Mahindra Bank Ltd, private sector lenders, announced on Thursday (December 28) that they’ve been issued demand notices by the Goods and Services Tax (GST) Department. The notices amount to ₹26.8 crore for ICICI Bank and ₹62.3 lakh for Kotak Mahindra Bank.
ICICI Bank reported that it received a notification from the Tamil Nadu Goods and Services Tax (GST) Department, citing a demand of ₹24.37 crore along with a penalty amounting to ₹2.43 crore. This information was disclosed in a filing with the stock exchange.
“Informed as of December 27, 2023, the bank has received communication from the Tamil Nadu Goods and Services Tax (GST) Department, stating a GST demand of ₹24,37,86,372 and a penalty of ₹2,43,78,638. The bank intends to appeal against this order,” the bank stated.
The directive results from an evaluation of tax payments as per Section 73 of the Tamil Nadu Goods and Services Tax Act, 2017. Additionally, ICICI Bank promptly declared its plan to contest the order through an appeal.
Meanwhile, on that very day, Kotak Mahindra Bank faced show cause cum demand orders from the assistant commissioner of central goods and service tax (GST) and excise in Cuttack, Odisha.
The orders imposed a total of ₹57.20 lakh for central goods and services tax (CGST), inclusive of interest and a penalty of ₹5.1 lakh under Section 73 of the Central Goods and Services Tax Act, 2017.
In quick response, Kotak Mahindra Bank expressed its plan to contest these orders, highlighting substantial grounds for its appeal. The bank is confident in its ability to challenge the denial of input tax credit (ITC) related to specific expenses in the financial years 2017-18 and 2018-19.
“The Bank is confident in the grounds supporting its stance and intends to appeal against these orders as per the relevant laws. The impact of these orders will be confined to the specified levy payable by the Bank,” stated the lender.
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