IDBI Bank announced on May 7 that it has received a GST demand order of Rs 2.97 crore, which includes interest and penalty, for the alleged excess availment of input tax credit (ITC) during the 2018-19 fiscal year. The Dehradun state tax department issued the order under GST rules, citing alleged excess availment and utilization of ITC.
The demand order comprises a tax demand of Rs 1.42 crore, as well as interest and penalty amountsing to Rs 1.41 crore and Rs 0.14 crore, respectively. In response, the bank stated that it is currently assessing the appropriate legal remedy, including the possibility of appeal, in accordance with the law.
Despite this development, IDBI Bank reported a 44 percent increase in net profit, reaching Rs 1,628 crore during the March quarter of the 2023-24 financial year, compared to Rs 1,133 crore in the corresponding period of the previous year. The bank’s total income also saw a notable rise, reaching Rs 7,887 crore in the period under review, up from Rs 7,014 crore in the January-March period of the 2022-23 fiscal year.
The financial year 2023-24 marked a significant milestone for the bank, with a 55 percent surge in net profit to an all-time high of Rs 5,634 crore, compared to Rs 3,645 crore in the previous year. Additionally, IDBI Bank’s total income for the 2023-24 fiscal year amounted to Rs 30,037 crore, reflecting substantial growth from Rs 24,942 crore in the financial year 2022-23.
As IDBI Bank continues to navigate the implications of the GST demand order, the institution’s financial performance and strategic decisions will be closely monitored by industry analysts and stakeholders.