ICICI Bank Faces Rs 7.47 Cr GST Demand From Maharashtra Department
ICICI Bank has informed stock exchanges of a demand order from the Maharashtra Goods and Services Tax (GST) department, totaling over Rs 7.47 crore. This encompasses GST and interest demands exceeding Rs 3 crore each, accompanied by a penalty of Rs 11 lakh.
The GST audit contends that the bank made claims for input tax credit (ITC) in GSTR-3B/9 that are not validated in GSTR-2A and claimed ITC from suppliers whose registration was canceled. The department has specified a GST demand of Rs 3,57,91,028, interest payment of Rs 3,78,21,814, and a penalty of Rs 11,17,171, culminating in a demand exceeding Rs 7.47 crore.
ICICI Bank has expressed its intention to file an appeal against this order.
From December onwards, the Maharashtra GST department has issued notices to several banks regarding the taxability of custodial services offered to foreign portfolio investors (FPIs). The state GST authorities argue that the custodial services provided by SEBI-registered custodian banks don't qualify as zero-rated supplies for export purposes.
In September, numerous banks received GST notices related to the usage of their brand names by branches and subsidiaries. This followed a recent ruling by the Authority for Advanced Rulings (AAR) of Tamil Nadu, Maharashtra, and Karnataka. The ruling stated that each entity within a bank with a different GST number would be considered a distinct entity for tax purposes, as reported by a media outlet earlier.
