Mumbai, February 3, 2025 – IDBI Bank Ltd. (BSE: 500116 | NSE: IDBI) has disclosed that the Additional Commissioner of CGST & CX, Mumbai South Commissionerate, has imposed a penalty of ₹5.22 crore on the bank due to alleged wrongful availing of Transitional Credit under Section 140(5) of the CGST Act, 2017.
Regulatory Action Details
The penalty is related to the financial year 2017-18, with the alleged contravention occurring in the TRAN-1 Form (Table 7b). The CGST authority issued an Order in Original under Section 74 of the CGST Act, 2017, directing the penalty. IDBI Bank received the official communication regarding this penalty on February 3, 2025.Financial Impact
- Tax Liability: ₹5.22 crore
- Penalty: ₹5.22 crore
- Interest: As applicable
Legal Recourse
IDBI Bank has stated that it is evaluating appropriate legal remedies, including an appeal, to contest the ruling as per applicable laws.Market & Investor Outlook
While the penalty may not significantly impact the bank’s overall financial stability, investors and stakeholders will closely watch how the bank navigates the legal proceedings. The decision could also influence future regulatory scrutiny and compliance measures for financial institutions.IDBI Bank is expected to provide further updates based on the legal proceedings and any subsequent rulings in the matter.