Equitas Small Finance Bank Limited Secures Reduction in GST Demand from Rs 533.81 Crore to Rs 23.95 Crore:

Equitas Small Finance Bank Limited, vide an Intimation dated September 22, 2026, had disclosed that in relation to a Show Cause Notice (SCN) dated September 19, 2026, passed by the Deputy Commissioner (ST), Central III Zone, Commercial Taxes Department, Government of Tamil Nadu, under Section 73 of the Central Goods and Services Tax Act, 2017, and the Tamil Nadu Goods and Services Tax Act, 2017, for financial year 2022-23, a personal hearing was held on September 25, 2026.

The bank also received a Form GST DRC-01 dated September 21, 2026, along with the SCN. Subsequent to the personal hearing, the bank was issued a communication dated September 28, 2026, issued by the GST authority, proposing a reduction in the aggregate demand from Rs 533.81 crore to Rs 23.95 crore (including a tax of Rs 21.67 crore, interest of Rs 11.10 lakh, and a penalty of Rs 2.16 crore).

The bank claimed that the reduction resulted from its submissions regarding interest income earned from loans and advances and the exemption claimed on the related turnover. However, the verification of supporting documents is still required for certain specified receipts and reconciliation items.

Presently, in furtherance of the earlier one, the bank had issued another Intimation dated September 28, 2026, in pursuance of Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, stating that despite the remaining amount being entitled to exemption, it will furnish all relevant documents and further evidence to the concerned authorities to support its position. The bank has stated that it will promptly inform about further progress in the present matter.