RBL Bank on Wednesday said it has received showcause notice with a GST demand of over Rs 173.08 crore for alleged wrongful input tax credit (ITC) availment in the 2022-23 fiscal year.
“The notice proposes a GST demand of Rs 1,73,08,68,535, including interest and penalty, for the financial year 2022-23, in relation to input tax credit availed by the bank under the separate GST registration obtained for its digital banking business vertical,” RBL Bank said in a regulatory filing.
RBL Bank said it will submit a response to the show cause notice received from the Maharashtra state goods and services tax (GST) authorities.
Based on its assessment, including favourable orders received from the GST authorities on an identical issue for 2018-19 and 2019-20, the bank believes that it has adequate grounds to contest the matter on merits.
“Accordingly, based on its current assessment and considering the favourable orders received from the GST authorities on the identical issue for FY 2018-19 and FY 2019-20, the Bank does not presently expect the matter to result in any material adverse impact on its financial position, operations, or profitability,” it added.
Shares of RBL Bank closed at Rs 404.55, up 0.63 per cent over its previous close on the BSE.
