Mumbai: The Maharashtra State GST Department conducted searches at three offices of ICICI Bank on Wednesday under the provisions of Section 67(1) and 67(2) of the Maharashtra GST Act, 2017. This section empowers GST authorities to inspect and search premises suspected of non-compliance with tax laws.
In a regulatory filing, ICICI Bank, the second-largest private sector lender in India, confirmed the action. The bank stated that the searches were initiated on December 4 and that it is fully cooperating with authorities by providing all requested data.
“On December 4, 2024, GST authorities initiated searches at three offices of ICICI Bank. The proceedings are ongoing, and the Bank is cooperating fully by providing data as requested,” ICICI Bank mentioned in its filing to the stock exchanges.
Details of the Search
While the bank has not disclosed the specific reasons for the search, the operation appears to be part of an ongoing investigation into potential non-compliance with GST regulations.
Section 67(1) of the Maharashtra GST Act allows authorities to search premises if there is reason to believe that goods are stored or documents and records are hidden to evade tax. Section 67(2) extends the scope to seize goods or documents required to verify compliance.
The authorities are likely scrutinizing the bank’s records to ensure adherence to GST rules. The focus could include discrepancies in tax filings, delayed payments, or mismatches in input tax credit claims.
Bank’s Cooperation
ICICI Bank has assured stakeholders of its full cooperation with the GST Department. However, the lender has refrained from disclosing the specific findings or documents under scrutiny, citing ongoing proceedings. The GST Department, too, has not yet issued any official statement about the nature or extent of the investigation.
Possible Implications
Search operations like these are part of the state GST department’s broader efforts to ensure tax compliance across sectors, including banking and financial services. Banks play a crucial role in facilitating GST transactions and are required to maintain strict adherence to tax norms.
If any non-compliance or irregularities are detected, ICICI Bank may face penalties, revised tax assessments, or stricter scrutiny in the future.
Stakeholders Await Further Clarity
The lack of detailed communication from both ICICI Bank and the Maharashtra GST Department has left stakeholders, including investors and customers, seeking more clarity on the matter. The bank’s stock performance in the coming days may reflect market sentiment based on any updates or further revelations about the case.
As proceedings are still ongoing, more information is expected to surface in the coming days, providing insight into the specifics of the search and its implications for ICICI Bank.
