Equitas SFB Receives ₹533.8 Cr GST Show Cause Notice

Equitas Small Finance Bank Limited has received a Show Cause Notice (SCN) from GST authorities for the financial year 2022-23, proposing an aggregate demand of ₹533.81 crore. This includes tax of ₹485.18 crore, interest of ₹11.10 lakh, and penalty of ₹48.51 crore. The majority of the proposed tax demand, ₹479.33 crore, relates to the disallowance of exemption on turnover, primarily interest income from loans and advances. The bank believes this interest income is exempt under GST regulations and has grounds to contest the notice. The SCN is at a show-cause stage and not a final adjudication.