Private sector major ICICI Bank has received a Goods and Services Tax (GST) show-cause notice demanding ₹229.14 crore (plus applicable interest and penalties) concerning banking services provided to customers maintaining specified minimum account balances.
Key Details of the Notice
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Issuing Authority: The notice was issued on September 30 by the Additional Commissioner at the CGST and Central Excise, Division-IV, Mumbai East Commissionerate.
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Scope of the Demand: The ₹229,14,35,396 tax demand centers around taxability interpretations related to services extended to account holders maintaining average minimum balances.
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Materiality Threshold: The bank disclosed the development in a regulatory exchange filing, noting that the cumulative financial impact crosses mandatory reporting thresholds.
Ongoing Litigation Context
This is not an isolated regulatory friction point for the lender. ICICI Bank stated that it is already engaged in active litigation—including ongoing writ petitions—concerning similar tax demands and past show-cause notices issued over identical matters.
The bank confirmed it will file its formal response and defense to the latest show-cause notice within the prescribed statutory timelines.
