Main non-public sector financial institution ICICI has obtained a tax demand order from the Maharashtra Items and Providers Tax (GST) division, amounting to greater than Rs 7.47 crore. This consists of curiosity calls for of greater than Rs 3 crore together with a penalty of Rs 11 lakh.
Issues over ICICI’s invalid enter tax credit score
The state GST audit raised issues concerning the financial institution’s invalid enter tax credit score (ITC) claims in GSTR-3B/9, unconfirmed in GSTR-2A, and ITC claims from suppliers with canceled registrations. “The financial institution made a disallowance of enter tax credit score (ITC) claimed in GSTR-3B/9, which isn’t confirmed in GSTR-2A and ITC claimed from canceled registration suppliers,” mentioned a state GST official.
The division has specified a GST demand of Rs 3.57 crore with an curiosity cost of Rs 3.78 crore and a penalty of Rs 11.17 lakh, accumulating to a complete demand exceeding Rs 7.47 crore.
ICICI intends to file attraction
In a press release, ICICI Financial institution mentioned it intends to file an attraction in opposition to the order by the state GST.
The Maharashtra GST division has issued notices to a number of banks regarding the taxability of custodial providers offered to overseas portfolio buyers (FPIs). The state GST authorities assert that the custodial providers provided by SEBI-registered custodian banks don’t qualify as zero-rated provides for export functions.
Earlier, a number of banks had obtained GST notices associated to using their model names by branches and subsidiaries, following a latest ruling by the Authority for Superior Rulings (AAR) of Tamil Nadu, Maharashtra, and Karnataka. The ruling acknowledged that every entity in a financial institution with a special GST quantity can be thought of a definite entity for tax functions.
