ICICI Bank has informed exchanges about a demand notice from the Maharashtra Goods and Services Tax (GST) department, totalling over Rs 7.47 crore. This encompasses GST and interest claims exceeding Rs 3 crore each, alongside a penalty of Rs 11 lakh.
The GST audit raises concerns about the bank’s invalid input tax credit (ITC) claims in GSTR-3B/9, unconfirmed in GSTR-2A, and ITC claims from suppliers with cancelled registrations.
The department specifies a GST demand of Rs 3,57,91,028, an interest payment of Rs 3,78,21,814, and a penalty of Rs 11,17,171, accumulating to a total demand exceeding Rs 7.47 crore.
An Appeal Against the Directive was Announced by ICICI Bank
From December onward, the Maharashtra GST department has sent notifications to various banks regarding the tax status of custodial services provided to foreign portfolio investors (FPIs), as per the Hindu Businessline report. State GST authorities argue that custodial services, offered by SEBI-registered custodian banks, don’t qualify as zero-rated supplies for export purposes.
Back in September, multiple banks received GST notices regarding the utilization of their brand names by branches and subsidiaries, following a recent ruling by the Authority for Advanced Rulings (AAR) of Tamil Nadu, Maharashtra, and Karnataka. Each distinct entity within a bank with a different GST number would be considered separately for tax purposes.
