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CSB Bank Limited received a GST penalty order of Rs 43,10,605 from the Assistant Commissioner, CGST & Central Excise, Mumbai East, dated December 26, 2025, for alleged excess Input Tax Credit availment and short Reverse Charge Mechanism payments from FY 2018-19 to 2022-23. The bank disputes the order and plans to appeal, stating no material financial or operational impact.
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The order, received on December 29, 2025 by CSB Bank Ltd, confirms a tax demand of Rs 42,97,454 under Section 74 of CGST Act, 2017, and MGST Act, 2017, plus penalty and interest. CSB Bank emphasizes disagreement and intends appropriate legal action to challenge the allegations spanning multiple fiscal years.
Key Developments
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Order issued under Section 74 for alleged excess ITC and RCM shortfalls FY 2018-19 to 2022-23
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Penalty amount stands at Rs 43,10,605 with tax demand of Rs 42,97,454
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Authority is Assistant Commissioner, Division III, CGST & Central Excise, Mumbai East
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Bank received communication on December 29, 2025
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No quantifiable impact on finances, operations or other activities
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CSB Bank to file appeal against the disputed order
Source: CSB Bank Limited Official Disclosure
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