ICICI Bank Hit with ₹237 Crore GST Demand Order, ₹21 Crore Penalty Imposed

ICICI Bank Limited has received an order under Section 73 of the Maharashtra Goodsand Services Tax (GST) Act, 2017 from the Additional Commissioner of CGST and Central Excise, Mumbai East Commissionerate.

The order dated December 17, 2025, raises a GST demand of ₹237.90 crore, including ₹216.27 crore in tax and ₹21.62 crore in penalty, along with applicable interest. The demand relates to services provided by the Bank to customers maintaining specified minimum balances in their accounts.

ICICI Bank said it is already engaged in litigation, including writ petitions on similar issues raised in past orders and show cause notices. The Bank added that it will contest the order through a writ petition or appeal within the prescribed timelines.

Criticism Over Accountability

The development has sparked criticism. Commentator Nitin Tyagi accused ICICI Bank of double standards in accountability. On X platform, he argued that while branch employees face forced resignations and humiliation for missing small targets, top leadership escapes responsibility even when decisions lead to massive penalties.

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Tyagi wrote: “₹21 crore penalty for bosses, resignation for staff: ICICI’s double standards. Losses and penalties are socialised, while power and protection are centralised. Employees are crushed daily in the name of performance, while leadership refuses to answer for actions costing hundreds of crores.”

He demanded that penalties arising from leadership decisions should be borne personally by decision-makers, not by shareholders, employees, or the public.

What’s Next

ICICI Bank will challenge the order legally but the criticism highlights growing concerns about corporate governance and accountability in India’s banking sector.

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