Karur Vysya Bank Confident as Madras High Court Extends GST Notice Stay, Sees No Material Financial Impact

The Karur Vysya Bank (KVB) has received a reprieve in its ongoing GST dispute as the Madras High Court extended the interim stay on a show cause notice till February 14, 2025. The notice, issued by the Tamil Nadu Commercial Taxes Department, proposed to levy GST and penalties totaling ₹2,537.43 crore for the financial year 2020-21.KVB maintains that it does not expect any material financial implications from this notice. The bank's management, based on legal advice, believes the GST demand is not tenable under the provisions of the GST Act. KVB has filed a writ petition challenging the notice, asserting its consistent compliance with tax obligations.This development underscores the ongoing complexities in GST implementation for the banking sector.

Source: Karur Vysya Bank Regulatory Filings