RBL Bank Limited has received a show cause notice from the Assistant Commissioner of State Tax, Mumbai, proposing a Goods and Services Tax (GST) demand of ₹103,76,98,197 for the financial year 2020-21. The demand relates to input tax credit availed for its Digital Banking business vertical. The bank plans to submit its response within the prescribed timelines and believes it has grounds to contest the matter, expecting no material adverse impact on its operations or financial position.
GST Demand Notice Issued to RBL Bank
RBL Bank Limited has announced receiving a show cause notice (SCN) dated August 27, 2026, from the Assistant Commissioner of State Tax, Mumbai. This notice, issued under Section 74 of the Maharashtra Goods and Services Tax Act, 2017, proposes a significant Goods and Services Tax (GST) demand amounting to ₹103,76,98,197. This figure includes proposed interest and penalties for the financial year 2020-21. The demand is specifically related to input tax credit (ITC) that the Bank had availed under a separate GST registration for its Digital Banking business vertical.
Bank’s Response and Outlook
RBL Bank has stated its intention to submit a formal response to the show cause notice within the timelines stipulated by the authorities. The Bank highlighted that it has received favorable orders from GST authorities concerning identical issues for the financial years FY 2018-19 and FY 2019-20. Based on this assessment and past precedents, the Bank is confident that it possesses adequate grounds to contest the matter on its merits.
Consequently, RBL Bank does not currently anticipate any material adverse impact on its operations or financial position arising from this notice at this stage. Further, the information regarding this notice has been hosted on the Bank’s official website, www.rbl.bank.in, in compliance with SEBI Listing Regulations.
Source: BSE
