IndusInd Bank Faces ₹30.15 Crore GST Penalty
IndusInd Bank, already under scrutiny for a Rs. 2,100 crore derivatives misstatement, now faces a Rs. 30.15 crore GST penalty amid deepening regulatory and audit challenges
IndusInd Bank Limited has been hit with a penalty of Rs. 30.15 crore by the Joint Commissioner of CGST & Central Excise, Thane Commissionerate, in connection with alleged violations under the Goods and Services Tax (GST) framework. The development was disclosed by the bank in a regulatory filing on March 24, 2025. The penalty has been imposed under Section 122(1)(ii) of the Central...
IndusInd Bank Limited has been hit with a penalty of Rs. 30.15 crore by the Joint Commissioner of CGST & Central Excise, Thane Commissionerate, in connection with alleged violations under the Goods and Services Tax (GST) framework. The development was disclosed by the bank in a regulatory filing on March 24, 2025.
The penalty has been imposed under Section 122(1)(ii) of the Central Goods and Services Tax (CGST) Act, 2017, which deals with the issuance of invoices without actual supply of goods or services—an offense that can lead to wrongful claims of input tax credit or evasion of tax.
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In its statement to the National Stock Exchange, BSE, and the Luxembourg Stock Exchange, IndusInd Bank clarified that the action taken is based on various GST-related issues. The order was received on March 24, 2025.
The bank has not detailed the specific nature of the alleged contraventions, it stated that it is currently reviewing the order and will explore the option of filing an appeal.
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The penalty amount of Rs. 30,15,18,000 has been quantified as a direct financial impact, though the bank has not indicated any broader operational consequences at this stage. The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and has been published on the bank’s official website.
This penalty compounds the bank's current challenges, as it is already under scrutiny for significant accounting discrepancies. Earlier this month, IndusInd Bank revealed a Rs. 2,100 crore ($175 million) overvaluation in its derivatives portfolio due to non-compliant internal trades, impacting its net worth by approximately 2.35% as of December 2024. In response, the bank has engaged Grant Thornton to conduct a forensic audit to investigate potential fraud and assess the accounting treatment of these derivatives.
The Reserve Bank of India ( RBI ) has expressed concerns over the bank's internal governance and has suggested that CEO Sumant Kathpalia and his deputy step down once suitable replacements are identified. IndusInd Bank has denied these claims. Despite these issues, the RBI has confirmed that IndusInd Bank remains well-capitalized, with a comfortable Capital Adequacy Ratio of 16.46% and a Provision Coverage Ratio of 70.20% as of December 31, 2024.
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