ICICI Bank, India’s second-largest private-sector bank, has received a GST demand and penalty order amounting to approximately ₹100.76 crore from the Maharashtra State Tax Department, the bank disclosed in a regulatory filing on Saturday. The demand was raised on January 3, 2025, and comprises ₹50.38 crore as GST dues, along with an equivalent amount as penalty and applicable interest, the bank stated.
Bank to Contest the Order
In the filing, ICICI Bank assured stakeholders that it will take all necessary steps to address the issue. The bank plans to contest the order through an appeal within the prescribed legal timeline. The demand was issued under Section 74 of the Central Goods and Services Tax Act, 2017, which pertains to tax evasion or incorrect filings due to willful misstatements or suppression of facts.
Background: Search Operations in December
This development follows searches conducted on December 4, 2024, at three ICICI Bank offices by the Maharashtra GST Department. At the time, the bank informed stock exchanges that it was fully cooperating with the department and providing the requested data.
“The proceedings are ongoing, and the Bank continues to cooperate fully,” ICICI Bank stated earlier.
Upcoming Board Meeting and Trading Restrictions
In a related exchange filing, ICICI Bank announced that its Board of Directors will meet on January 25, 2025, to approve the unaudited financial statements for the quarter and nine months ending December 31, 2024. To comply with SEBI regulations, the bank’s trading window for dealing in securities has been closed from January 1 to January 27, 2025.
Impact and Next Steps
The hefty GST demand and penalty order have raised concerns about regulatory scrutiny in the banking sector. ICICI Bank’s appeal process will be closely watched, as the outcome may set a precedent for similar cases in the industry. Meanwhile, stakeholders await further updates regarding the bank’s financial performance and its response to the ongoing proceedings.
