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RBL Bank Faces Rs 173 Crore GST Demand Over Input Tax Credit
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News18•30-09-2026, 16:15
RBL Bank Faces Rs 173 Crore GST Demand Over Input Tax Credit
- •RBL Bank received a show cause notice for a GST demand of over Rs 173.08 crore.
- •The demand, including interest and penalty, is for the financial year 2022-23.
- •The notice relates to alleged wrongful input tax credit (ITC) availment for its digital banking business.
- •RBL Bank plans to respond to the notice from Maharashtra state GST authorities.
- •The bank expects no material adverse impact, citing favorable past orders on identical issues for FY 2018-19 and FY 2019-20.
Key Questions Answered
RBL Bank received a show-cause notice proposing a GST demand of over Rs 173.08 crore, which includes interest and penalty for the 2022-23 fiscal year.
The notice was issued over alleged wrongful input tax credit (ITC) availment by the bank under a separate GST registration obtained for its digital banking business vertical.
RBL Bank stated it will submit a response to the authorities and plans to contest the matter on its merits, supported by favourable orders received on identical issues for previous fiscal years.
