Indian Overseas Bank (IOB) has received a Rs 699.52 crore demand notice from the Deputy Commissioner (ST)-III, Large Taxpayers Unit, Chennai-35, for alleged GST liabilities for the assessment year 2020-21. The notice, dated February 27, 2025, includes a Rs 35.26 crore penalty, along with tax and interest. The demand follows an annual scrutiny of GST filings, during which authorities flagged discrepancies.
IOB has taken the legal route to challenge the notice and expects the appellate authorities to overturn the order. The bank maintains that it has a strong case and, based on expert legal opinion, believes the demand lacks legal merit. IOB assured that the demand will have no material impact on its financials, operations, or business activities.
The bank reported an impressive 21 percent year-over-year rise in net profit in the October-December quarter of the financial year 2025. Despite the GST demand notice, IOB remains confident in its financial stability and continues to focus on its growth and operational efficiency.
