ICICI Bank GST Demand Notice – ₹216 Crore
- First Published: September 30, 2025, 11:28 PM IST | Last Updated: September 30, 2025, 11:28 PM IST
- ICICI Bank has received a Show Cause Notice (SCN) from the Additional Commissioner of CGST, Mumbai East Commissionerate, demanding ₹216.27 crore (approximately $26 million USD as of October...
- ICICI Bank is currently involved in litigation, including a writ petition, regarding a similar issue raised in previous orders and SCNs.
ICICI Bank Faces ₹216.27 Crore GST Demand Over Minimum Balance Charges
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First Published: September 30, 2025, 11:28 PM IST | Last Updated: September 30, 2025, 11:28 PM IST
GST Demand Details
ICICI Bank has received a Show Cause Notice (SCN) from the Additional Commissioner of CGST, Mumbai East Commissionerate, demanding ₹216.27 crore (approximately $26 million USD as of October 1, 2025) in alleged short-paid Goods and Services Tax (GST). The notice, dated September 29, 2025, pertains to services provided by the bank to customers who maintain specified minimum balances in their accounts.
Ongoing Litigation and Materiality threshold
ICICI Bank is currently involved in litigation, including a writ petition, regarding a similar issue raised in previous orders and SCNs. While the bank is actively contesting these claims, the cumulative amount of the current demand, when considered alongside past disputes, exceeds the bank’s materiality threshold, triggering the requirement for public disclosure. The bank defines its materiality threshold in its annual report as any financial impact exceeding ₹200 crore.
bank’s Response
ICICI Bank stated it will file a detailed reply to the SCN within the prescribed timeframe. The bank did not specify the exact nature of its defense but indicated it would leverage arguments presented in its ongoing litigation on similar matters.
GST and Banking Services
the applicability of GST to banking services, particularly those related to minimum balance maintenance fees, has been a subject of debate and legal interpretation in india. The GST Council has issued various clarifications over time, leading to differing interpretations by tax authorities and financial institutions. This case highlights the ongoing complexities in applying GST regulations to the evolving landscape of banking products and services.
Implications for Customers
While the immediate impact on ICICI Bank customers is unclear, a favorable resolution for the bank could prevent potential adjustments to service fees or account terms. Conversely, an unfavorable outcome could lead to retrospective tax liabilities and potential adjustments to customer accounts. The outcome of this case may also set a precedent for other banks facing similar GST demands.
Disclaimer: This report is based on a syndicated feed and may have been lightly edited by Business Standard staff.
Source: Business Standard