City Union Bank has received a demand order under the Tamil Nadu Goods and Services Tax (TNGST) Act, 2017. The order, dated December 30, 2025, requires the bank to pay ₹191.05 crore, inclusive of applicable interest and penalties. The bank intends to pursue appropriate legal remedies and believes the demand lacks legal merit. The bank says it does not anticipate any significant financial impact.
Details of Demand Order
City Union Bank received a demand order on December 30, 2025, related to the Tamil Nadu Goods and Services Tax (TNGST) Act, 2017. The order was issued by the Assistant Commissioner ST (FAC) Kumbakonam Town, Assessment circle.
Financial Implications
The demand order totals ₹191.05 crore, which includes applicable interest and penalties. The demand pertains to the FY 2021-22 period and relates to the bank’s treatment of certain exempt incomes, service charges, and input tax credit (ITC) claims.
Bank’s Response
City Union Bank maintains that it has consistently complied with all GST provisions. The bank intends to pursue all available legal remedies to challenge the demand order. Based on its assessment, the bank does not expect any material adverse financial implications as a result of this order. The bank emphasizes its commitment to adhering to GST regulations and will take necessary actions to protect its interests.
Source: BSE
