IOB Receives ₹699.52 Crore GST Demand

28 Feb 2025 , 10:00 PM

Indian Overseas Bank (IOB) received a tax demand notice of ₹699.52 crore from the Deputy Commissioner (ST)-III, Large Taxpayers Unit, Chennai-35. The notice relates to quantum of alleged GST liability with respect to assessment year 2020-21.

It also includes ₹35.26 crore penalty imposed by the tax authorities towards tax, interest and penalty. The demand notice was issued after the bank’s GST filings were audited annually. Officials found discrepancies in the filings that resulted in the tax claim.

IOB has disputed the demand, arguing that it has a strong case to challenge the action. The bank has pursued legal avenues and contends that the request is not legally justified. The appellate authorities would inevitably quash the order based on legal opinion, IOB expects.

The bank has made it clear that the demand notice will not materially impact its financial position. “The current issue will have no impact on the operation, profitability and business activities of the bank.” IOB continues to be optimistic about a resolution and is pursuing the matter through the appropriate legal channels.