Indian Overseas Bank receives Rs 699.5 crore GST demand notice

Indian Overseas Bank, a public sector institution, has received a demand notice amounting to Rs 699.52 crore from the Deputy Commissioner (ST)-III of the Large Taxpayers Unit in Chennai. This demand is related to alleged GST liabilities for the assessment year 2020-21. Dated February 27, 2025, the notice includes a penalty of Rs 35.26 crore, in addition to the tax and interest owed.

"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.

After officials found certain inconsistencies in the yearly review of GST filings, the demand was made. The bank has asserted, however, that it has a compelling case on its own merits and that the demand is not legally justified, according to professional legal opinion.

Indian Overseas Bank expects the appellate authority to overturn the order, having taken the proper legal action. Additionally, the bank made it clear that the demand notice would not materially affect its operations, finances, or other business-related 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," it stated.