RBL Bank Receives Rs 173 Crore GST Demand Notice For FY23
GST notice concerns input tax credit claimed for digital banking.
RBL Bank has received a show cause notice from the Maharashtra Goods and Services Tax authorities proposing a GST demand of Rs 173.09 crore, including interest and penalty, for the financial year 2022-23. The notice, dated September 29, 2026, was issued by the Assistant Commissioner of State Tax, Mumbai, under Section 73 of the Maharashtra Goods and Services Tax Act, 2017.
The matter relates to input tax credit claimed by RBL Bank under a separate GST registration for its digital banking business. The proposed demand includes the applicable tax, interest and penalty. The bank said it will submit its response to the notice within the prescribed timelines and contest the matter through the appropriate process.
RBL Bank said it has received favourable orders from GST authorities on an identical issue for the financial years 2018-19 and 2019-20. Based on those orders and its current assessment of the matter, the private sector lender said it believes it has adequate grounds to contest the proposed demand on merits.
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The bank also said it does not currently expect the GST notice to have any material adverse impact on its financial position, operations or profitability. The disclosure comes as companies continue to face scrutiny from tax authorities over GST compliance, including the treatment and eligibility of input tax credits across different registrations and business operations.
RBL Bank, headquartered in Mumbai, has a banking legacy dating back to 1943 and provides services across retail, commercial, small and medium enterprises, corporate, agriculture and rural banking, digital payments and wealth management. As of June 30, 2026, the bank served more than 15 million customers through 628 branches and a network of business correspondent branches across 28 states and Union Territories. Its shares are listed on both the NSE and BSE under the ticker RBLBANK.
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