GST show cause notice proposing demand of Rs. 1,73,08,68,535 for FY 2022-23

The Bank received a show cause notice dated September 29, 2026 under Section 73 of the Maharashtra GST Act, 2017 from the Assistant Commissioner of State Tax-Mumbai.

Wed 30 Sep 2026

Proposed GST Demand

Rs. 1,73,08,68,535 including interest and penalty

Financial Year

FY 2022-23

Issue

Input tax credit availed under separate GST registration for Digital Banking vertical

Notice Date

September 29, 2026

Regulatory Authority

Assistant Commissioner of State Tax-Mumbai under Section 73 of Maharashtra GST Act, 2017

What happened

The Bank has received a show cause notice (SCN) dated September 29, 2026 from the Assistant Commissioner of State Tax-Mumbai, issued under Section 73 of the Maharashtra Goods and Services Tax Act, 2017.

The amount involved

• Proposed GST demand: Rs. 1,73,08,68,535 including interest and penalty.
• Period: financial year 2022-23.
• Issue: input tax credit availed under the separate GST registration obtained for the Bank's Digital Banking business vertical.

The Bank's position

• It will submit a response to the SCN within the prescribed timelines.
• It refers to favourable orders received from the GST authorities on the identical issue for FY 2018-19 and FY 2019-20.
• Based on its current assessment, it believes it has adequate grounds to contest the matter on merits.
• It does not presently expect the matter to result in any material adverse impact on its financial position, operations or profitability.

How to read it

A show cause notice is a preliminary step in which the tax department asks a taxpayer to explain a position before any final demand order is passed. It is a proposed demand, not a confirmed liability. The figure gives investors a sense of the maximum amount at stake at this stage. The outcome will depend on the Bank's reply and the authority's subsequent order.

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