Indian Overseas Bank (IOB), a public sector lender, has received a demand notice of ₹699.52 crore from the Deputy Commissioner (ST)-III, Large Taxpayers Unit, Chennai-35. The notice, issued on February 27, 2025, pertains to alleged Goods and Services Tax (GST) liabilities for the assessment year 2020-21. It includes a penalty of ₹35.26 crore along with tax and interest.
GST Notice Issued After Annual Scrutiny
The demand was raised following an annual review of the bank’s GST filings. Authorities claim to have identified certain discrepancies, which led to the imposition of the tax liability and penalty. However, Indian Overseas Bank has asserted that it has a strong legal case and believes the demand is unjustified.
Bank to Challenge the Order
In a regulatory filing, IOB stated that it has already taken legal action against the demand and expects the appellate authorities to dismiss the order. The bank is relying on expert legal opinion and maintains that the demand does not have a solid legal basis.
No Impact on Financial Stability
Despite the large tax demand, IOB has assured stakeholders that it will not affect its financial position, operations, or business activities. The bank remains confident that the issue will be resolved in its favor.
Market Reaction
Following the news, Indian Overseas Bank’s stock declined by 4.56% on the Bombay Stock Exchange (BSE), closing at ₹43.54, down by ₹2.08. Investors will be closely watching further developments in the case.
