ICICI Bank has disclosed receiving a demand order from the Maharashtra Goods and Services Tax (GST) department, totaling over Rs 7.47 crore. The demand includes GST and interest payments exceeding Rs 3 crore each, along with a penalty of Rs 11 lakh. The GST audit alleges a disallowance of input tax credit (ITC) in GSTR-3B/9 that is unconfirmed in GSTR-2A and ITC claimed from a canceled supplier’s registration. The department specifies a GST demand of Rs 3,57,91,028, interest of Rs 3,78,21,814, and a penalty of Rs 11,17,171. ICICI Bank plans to appeal the order. The Maharashtra GST department has issued notices to multiple banks regarding the taxability of custodial services provided to foreign portfolio investors since December. State GST authorities argue that SEBI-registered custodian banks’ custodial services do not qualify as zero-rated supplies for export purposes. In September, banks received GST notices related to brand name use by branches and subsidiaries following a ruling by the Authority for Advanced Rulings (AAR) of Tamil Nadu, Maharashtra, and Karnataka, considering each entity with a distinct GST number as a separate entity for tax purposes.
