Indian Overseas Bank receives ₹699.5-crore GST demand, to challenge order

The public sector Indian Overseas Bank (IOB) on Friday (February 28) said it has received a ₹699.52 crore demand notice from the Deputy Commissioner (ST)-III, Large Taxpayers Unit, Chennai-35, for alleged GST liabilities related to the assessment year 2020-21. The notice, dated February 27, 2025, includes a penalty of ₹35.26 crore, along with tax and interest.”This is to inform that the Bank has received a demand dated February 27, 2025 from Deputy Commissioner (ST)-III, Large Taxpayers Unit, Chennai-35 for GST liability of Rs 699.52 Crores inclusive of interest and penalty from Annual Scrutiny for the Assessment Year 2020-21. The penalty imposed by the authority amounts to Rs 35.26 Crores,” Indian Overseas Bank said in a regulatory filing.

The demand was issued following an annual scrutiny of GST filings, where authorities identified certain discrepancies. However, the bank has stated that it has a strong case on merits and, based on expert legal opinion, believes the demand lacks legal justification.

Also Read: IndusInd Bank Q3 Results: Profit beats estimates but falls 39% on-year; NPAs riseIndian Overseas Bank has taken appropriate legal recourse and expects the appellate authorities to set aside the order. The bank also clarified that the demand notice will have no material impact on its financials, operations, or other business activities.

“The bank has taken appropriate legal recourse in the matter, and based on our assessment and legal course adopted by the Bank and expert opinion, we believe that the demand order shall have no material impact on the financials, operations or other activities of the bank,” the bank added.

Shares of Indian Overseas Bank ended at ₹43.54, down by ₹2.08, or 4.56%, on the BSE.

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