Yes Bank Faces GST Penalty of Rs 6.87 Lakh for Non-Compliance

Yes Bank received two GST demand orders with penalties of over Rs 6.87 lakh from Manipur and Punjab GST departments. The penalties relate to the reversal of input tax credit with interest. Despite the penalty, Yes Bank does not anticipate a significant effect on its operations or finances. The bank intends to appeal against the orders.

Yes Bank on Wednesday said it has received two GST demand orders, which levied a penalty of over Rs 6.87 lakh.

The penalty levied by the Manipur and Punjab GST departments amounts to Rs 5.05 lakh and over Rs 1.81 lakh, respectively.

''the bank has received two orders from the Goods and Services Tax (GST) Department, Manipur and Punjab...on April 30, 2024, raising demand for reversal of input tax credit (ITC) along with interest and levy of a penalty of Rs 5,05,940 and Rs 1,81,623, respectively,'' Yes Bank said in a regulatory filing.

It said the tax and interest demand is below the material threshold limit currently applicable to the bank.

''The bank does not expect any material impact on financial, operation or other activities of the bank due to the said orders,'' it said.

The bank will pursue an appeal against these orders, it added.