Yes Bank Faces GST Demand and Penalty on Input Tax Credit

Yes Bank Limited issued a statement on July 16, 2024, regarding a recent order received from the Tamil Nadu Goods and Services Tax (GST) department. The order, dated July 15, 2024, pertains to a demand for the reversal of input tax credit (ITC) claimed by the bank, along with associated interest and a penalty of ₹22,79,659.

This penalty stems from Section 73 of the Central Goods and Services Tax Act, 2017 (CGST Act) and its corresponding state counterpart, the Tamil Nadu Goods and Services Tax Act, 2017 (TNGST Act). While the specific details surrounding the disputed ITC claim are not publicly available, Section 73 of the CGST Act generally deals with situations where an ineligible input tax credit is availed or utilised.

However, Yes Bank emphasises that the total amount demanded for tax reversal, interest, and penalty falls below the material threshold limit applicable to the bank. This implies that the financial impact on the bank’s operations is not considered significant. Consequently, the bank does not anticipate any major disruptions to its financial health, operational activities, or other ongoing business endeavours as a result of this order.

Despite the seemingly minor financial impact, Yes Bank has declared its intention to challenge the GST department’s order. By pursuing an appeal, the bank aims to overturn the demand for ITC reversal and associated penalties potentially.

About Yes Bank Limited

Incorporated in 2003, Yes Bank Ltd is engaged in providing a wide range of banking and financial services. On July 16, 2024, Yes bank shares opened at 26.32 and touched the day high of 26.85 at 11:08 AM.

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