ICICI Bank has disclosed receipt of a show cause notice seeking ₹229.14 crore in Goods and Services Tax over services offered to customers who maintain specified minimum balances in their accounts. The notice also seeks applicable interest and penalty, in addition to the tax amount.
According to the bank’s stock exchange disclosure, the notice was received on September 30, 2026, from the Additional Commissioner, CGST and Central Excise, Division-IV, Mumbai East Commissionerate. The amount of GST sought is ₹229,14,35,396.
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Dispute Concerns Services Linked To Minimum Account Balances
The proceedings concern the GST treatment of services provided by the bank to account holders maintaining the prescribed minimum balances. The notice has been issued under Section 73 of the Maharashtra Goods and Services Tax Act, 2017, according to the disclosure.
The information disclosed identifies the broad subject of the dispute but does not specify the individual banking services covered, the tax periods involved or the detailed calculation behind the proposed demand. Accordingly, the notice should not be described as a tax on customers’ account balances themselves.
Similar Issues Already Under Litigation
ICICI Bank stated that it is already contesting similar issues arising from earlier orders and show cause notices. Those proceedings include a writ petition, indicating that the treatment of minimum-balance-linked banking services is already the subject of a legal challenge.
The latest notice therefore adds to an existing dispute involving the bank and the tax authorities. The disclosure does not provide the status or outcome of the earlier proceedings.
Disclosure Made After Materiality Threshold Was Crossed
The lender explained that the aggregate or cumulative amount involved crossed the applicable materiality threshold, prompting it to report the development to the stock exchanges.
While the notice seeks approximately ₹229.14 crore in GST, the interest and penalty are additional components. The disclosure does not quantify those amounts, so the complete monetary exposure cannot be determined from the stated tax figure alone.
Bank To Respond Within Prescribed Time
ICICI Bank said it would submit its reply to the show cause notice within the prescribed timelines. Its response will provide the bank’s position on the proposed tax claim.
The matter remains at the show cause notice stage. The reported amount represents the tax sought by the authorities in the notice; the disclosure does not establish that it has been confirmed through a final adjudication order or accepted by the bank as payable.
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