RBL Bank Receives GST Show Cause Notice for ₹103.77 Crore Demand
RBL Bank received a GST show cause notice for ₹103.77 crore for FY 2020-21 concerning input tax credit for its digital banking business. The bank expects no material adverse impact, citing favorable past rulings on similar issues.
The demand of over ₹103 crore is substantial, but the bank's assessment that it will not materially impact operations or financial position suggests a medium rather than high impact.
The bank has received a show cause notice with a significant demand, which is a negative development. However, the bank believes it has strong grounds to contest and does not expect a material adverse impact, mitigating the overall negativity.
RBL Bank Limited has received a show cause notice (SCN) dated August 27, 2026, from the Assistant Commissioner of State Tax - Mumbai, under Section 74 of the Maharashtra Goods and Services Tax Act, 2017. The notice pertains to a proposed Goods and Services Tax (GST) demand of ₹103,76,98,197, which includes interest and penalty, for the financial year 2020-21.
The demand is related to input tax credit availed by the Bank for its Digital Banking business vertical. RBL Bank stated that it will submit its response to the show cause notice within the prescribed timelines. The Bank believes it has strong grounds to contest the matter on its merits, citing favorable orders received from GST authorities on identical issues for FY 2018-19 and FY 2019-20.
Consequently, the Bank does not anticipate any material adverse impact on its operations or financial position at this stage. This information is being hosted on the Bank's website at www.rbl.bank.in, in compliance with SEBI Listing Regulations.
A plain-language summary of a public exchange filing by RBL Bank Limited. Read the original for the full detail.