IDBI Bank faces Rs 2.97 crore GST demand order

IDBI faces GST demand order: IDBI Bank revealed on Tuesday that it has been served with a GST demand order totaling Rs 2.97 crore, comprising taxes, interest, and penalties, for allegedly exceeding input tax credit (ITC) claims. The order, issued by the Dehradun state tax department, pertains to the 2018–19 fiscal year and alleges overutilisation of ITC.

In compliance with regulatory obligations, the private sector bank disclosed receiving the demand order, which specifies a tax liability of Rs 1.42 crore, accompanied by interest and penalties amounting to Rs 1.41 crore and Rs 0.14 crore, respectively.

IDBI Bank stated its intent to explore legal avenues, including the possibility of appeal, to address the situation within the framework of applicable laws.

Following the development, IDBI Bank shares ended 4.10 per cent lower at Rs 85.16, underperforming the Sensex which closed 0.52 per cent lower.

(with PTI inputs)