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RBL Bank has disclosed a GST show-cause notice proposing a demand of ₹1,73,08,68,535—about ₹173.09 crore, including interest and penalty—for FY 2022-23. The bank says the matter concerns input tax credit (ITC) claimed under a separate GST registration for its Digital Banking business vertical. This is a proposed demand, not a final tax ruling or an amount the bank has said it paid.
What the notice says
The Assistant Commissioner of State Tax, Mumbai, issued the notice dated September 29, 2026, under Section 73 of the Maharashtra Goods and Services Tax Act, 2017. RBL Bank disclosed it to the BSE and NSE on September 30 under Regulation 30 of the SEBI Listing Regulations. The proposed total is ₹1,73,08,68,535, inclusive of interest and penalty; the bank’s filing does not provide a separate breakdown of those components. RBL Bank’s exchange filing
The filing identifies the issue as ITC availed under a separate GST registration for the bank’s Digital Banking business vertical. It does not describe the specific transactions or set out the tax authority’s detailed reasoning. It is therefore more precise to describe this as a notice concerning ITC than to treat a headline allegation as an established finding of wrongful credit.
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What happens next
A show-cause notice proposes a demand and gives the recipient an opportunity to respond. RBL Bank said it would submit its response within the prescribed timelines. The September 30 filing does not establish that the bank has filed that response, that an adjudication has taken place, or what the authority will decide.
The bank says it has adequate grounds to contest the matter on merits, citing favorable GST authority orders on an identical issue for FY 2018-19 and FY 2019-20. The filing does not reproduce those orders or explain their reasoning, and citing them does not establish the outcome of the FY 2022-23 proceeding.
How this differs from RBL Bank’s earlier GST notice
The current notice is distinct from an earlier proceeding concerning FY 2019-20. RBL Bank disclosed that earlier notice in October 2025; it was issued under Section 74 and proposed ₹92,00,23,536, including interest and penalty, in relation to reversal of ITC from the separate Digital Banking registration. In March 2026, the bank reported that the authority withdrew the entire demand and concluded those proceedings. That withdrawal concerned the earlier notice, not the FY 2022-23 notice.
| Proceeding | Current FY 2022-23 notice | Earlier FY 2019-20 notice |
|---|---|---|
| Statutory reference | Section 73 of the Maharashtra GST Act | Section 74 of the Maharashtra GST Act |
| Proposed amount | ₹1,73,08,68,535, including interest and penalty | ₹92,00,23,536, including interest and penalty |
| Status disclosed by RBL Bank | Notice received; bank said it would respond within prescribed timelines | Demand withdrawn in full and proceedings concluded, according to the bank’s March 2026 filing |
Sources: September 30, 2026 filing, October 1, 2025 filing and March 24, 2026 filing.
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RBL Bank said that, based on its current assessment and the earlier favorable orders it cited, it does not presently expect the matter to have a material adverse impact on its financial position, operations or profitability. That is the bank’s assessment, not a final ruling on the notice or an independent determination of its legal merits.
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