ICICI Bank has told exchanges it has received a demand order from the Maharashtra Goods and Services Tax (GST) department amounting to more than Rs 7.47 crore. This includes GST and interest demands of more than Rs 3 crore each, along with a penalty of Rs 11 lakh.
The GST audit contends that the bank made a "disallowance of input tax credit (ITC) claimed in GSTR-3B/9 which is not confirmed in GSTR-2A and ITC claimed from registration cancelled supplier." 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. All this cumulates to a total demand exceeding Rs 7.47 crore.
ICICI Bank said it intends to file an appeal against the order.
Starting December, the Maharashtra GST department has issued notices to multiple banks concerning the taxability of custodial services provided to foreign portfolio investors (FPIs), according to a report by the Hindu Businessline. The state GST authorities assert that the custodial services offered by SEBI-registered custodian banks do not qualify as zero-rated supplies for export purposes.
In September, several banks received GST notices related to the use of their brand names by branches and subsidiaries, following a recent ruling by the Authority for Advanced Rulings (AAR) of Tamil Nadu, Maharashtra, and Karnataka. The ruling stated that each entity in a bank with a different GST number would be considered a distinct entity for tax purposes as reported earlier by Business Standard.
