City Union Bank Receives ₹208.91 Cr Tax Demand Order
City Union Bank has received a demand order under the Tamil Nadu Goods & Services Tax (TNGST) Act, 2017, from the Deputy Commissioner of State Tax, Tanjore. The order pertains to the Financial Year 2021-22 and demands a total of ₹208.91 crore, comprising ₹110.37 crore in tax and ₹98.52 crore in interest and penalty. This demand is a reduction from a previous order dated December 29, 2025, which had demanded ₹337.79 crore. The bank states that the demand is based on issues such as taxing exempt income and estimating taxable supplies incorrectly. City Union Bank believes the demand lacks legal sanctity and factual accuracy, and it intends to pursue appropriate legal remedies, expecting no material financial impact.
Key Highlights
- Bank received a ₹208.91 crore tax demand order for FY 2021-22.
- Demand includes ₹110.37 crore tax and ₹98.52 crore interest/penalty.
- Original demand was ₹337.79 crore; this is a reduced amount.
- Bank disputes the demand, citing factual and legal errors.
- No material financial impact expected due to compliance and legal recourse.
Price Impact
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