ICICI Bank Faces Hefty GST Demand in New Tax Dispute

ICICI Bank has received a tax demand notice of Rs 768.6 crore related to alleged short payment of GST. The demand, issued under Section 74 of the Maharashtra Goods and Services Tax Act, 2017, concerns services provided to customers with minimum balances. The bank plans to contest the order.

In a significant development, ICICI Bank has been served with a hefty tax demand of Rs 768.6 crore for an alleged shortfall in GST payments, a move attributed to services rendered to customers maintaining specified minimum balances.

This demand, disclosed in a regulatory filing on Thursday, arises from an order dated March 18, 2026, under Section 74 of the Maharashtra Goods and Services Tax Act, 2017. The notice was issued by the Additional Commissioner of CGST and Central Excise, Mumbai East Commissionerate.

ICICI Bank, which is already embroiled in litigation over similar past orders, stated its intention to challenge this notice. The bank plans to initiate a writ petition or appeal within the designated timeframe, asserting the case crosses the materiality threshold requiring disclosure.

(With inputs from agencies.)