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ICICI Bank has been issued a GST demand notice of INR 49.11 crore by West Bengal tax authorities, which includes tax, interest, and penalty components. The demand concerns services provided to customers maintaining specified minimum balances. The bank has previously received similar notices and has filed writ petitions challenging them. Since the cumulative amount crossed the materiality threshold, ICICI Bank disclosed the matter publicly. The bank is reviewing the order carefully and plans to contest it through further appeals. This case underscores the ongoing evaluation banks face regarding GST on certain banking services.
ICICI Bank has received a demand notice of INR 49.11 crore from the West Bengal tax authorities for an alleged short payment of Goods and Services Tax (GST). The total demand includes INR 23.52 crore as tax, INR 23.23 crore as interest, and INR 2.35 crore as penalty. The notice, issued by the Additional Commissioner of Revenue (Appeals), West Bengal, pertains to services provided by banks to customers maintaining specified minimum balances in their accounts. Advertisement
The bank stated that similar issues have been raised in the past through show cause notices and orders by various tax authorities. While ICICI Bank has filed writ petitions challenging these notices earlier, the cumulative amount involved has now crossed the materiality threshold. Because of this, the bank has made the disclosure publicly in line with regulatory requirements.
ICICI Bank also noted that it is in the process of evaluating the contents of the order thoroughly, which caused a delay in reporting. The bank emphasized that it will take appropriate measures, including filing a further appeal within the prescribed timeline, to contest the demand.
This matter reflects ongoing scrutiny regarding GST applicability on banking services offered to account holders who maintain certain minimum balances. ICICI Bank?s disclosure indicates that the bank is addressing the issue through established legal and regulatory channels while ensuring compliance with reporting norms. Observers note that cases of this nature often involve detailed evaluation and multiple layers of appeals before resolution.
Source PTI
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