ICICI Bank’s Rs 216 Crore Tax Showdown — Market Reacts With Caution

ICICI Bank Limited has recently received a significant show cause notice (SCN) from the Deputy Commissioner of Revenue, West Bengal, demanding payment of approximately 2.16 billion rupees in taxes. This notice relates to Goods and Services Tax (GST) liabilities arising from services provided by the bank to customers maintaining specified minimum account balances.

 

Key Highlights Of The Tax Notice

Bank’s Legal And Regulatory Position

ICICI Bank is currently contesting the demand and has filed writ petitions regarding similar cases. Due to the cumulative amount surpassing the materiality threshold, this latest SCN is being reported publicly. The bank is in the process of evaluating the notice’s contents carefully and intends to file a detailed reply within the stipulated timeline. Further legal appeals are planned to protect the bank’s interests.

 

Potential Impact And Market Implications

While the tax demand poses a financial liability, ICICI Bank remains confident in its legal positions and regulatory compliance. The matter has garnered investor attention but is unlikely to derail the bank’s strong operational performance or strategic growth plans. The bank continues to maintain transparency by immediately disclosing such material developments.

 

Source: Economic Times, Business Standard, BSE, The Hindu Business Line