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Indian Overseas Bank (IOB) has received a ₹699.5 crore GST demand, including a ₹35.26 crore penalty. The bank disputes the claim, citing legal merit, and has initiated legal proceedings. Indian Overseas Bank share price dropped 4.56%, closing at ₹43.54 on the BSE.
Indian Overseas Bank (IOB) has been issued a ₹699.5 crore demand notice by the Deputy Commissioner (ST)-III, Large Taxpayers Unit, Chennai, following an annual scrutiny of GST filings for the assessment year 2020-21. The notice includes tax liabilities, interest, and a ₹35.26 crore penalty. However, IOB has strongly contested the claim, stating that the demand lacks legal justification. The bank has taken legal recourse and expects the order to be overturned. Despite the demand, the bank has assured that it will not impact its financial stability or daily operations.
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Total GST Demand: ₹699.52 crore, including tax, interest, and penalty.
Penalty Amount: ₹35.26 crore imposed as part of the demand.
Assessment Year: 2020-21, based on annual scrutiny by GST authorities.
Bank’s Response: Plans legal action, citing a strong case on merit.
Impact on Operations: No material effect on financials or business activities.
Stock Market Reaction: Indian Overseas Bank share price fell 4.56%, closing at ₹43.54 on the BSE.
Also read: MSTC Ltd. Receives ₹105.55 Crore Income Tax Demand for AY 2019-20
IOB maintains that the GST demand is not legally justified and has sought expert legal opinions to challenge the order. The bank has initiated legal proceedings, expecting appellate authorities to set aside the notice. The scrutiny identified discrepancies in GST filings, but IOB believes it has complied with all regulatory norms.
While the demand may seem significant, the bank asserts that its financials remain unaffected. Investors are closely monitoring developments, especially the impact on the Indian Overseas Bank share price, which has already reacted negatively. The bank’s ongoing legal challenge will determine whether the liability is upheld or overturned.
Component | Amount (₹ Crore) |
Tax Liability | 664.26 |
Interest | Included in total demand |
Penalty | 35.26 |
Total Demand | 699.52 |
IOB’s legal response to the GST demand will be closely watched by stakeholders. While the notice has raised concerns, the bank has reassured that its operations and financial stability remain intact. Investors will continue tracking updates, particularly in relation to Indian Overseas Bank share price, to gauge the market’s reaction to the ongoing proceedings.
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