City Union Bank receives a Tamil Nadu GST remand order with a ₹208.91 crore demand, down from an earlier order

City Union Bank Limited has told the exchanges that it received on 14 Oct 2026 a demand order under the Tamil Nadu Goods and Services Tax Act, 2017, from the Deputy Commissioner of State Tax, Tanjore. The order is for the financial year 2021-22 and was passed under Section 73 of the Act. It is a remand order, issued after the Madurai Bench of the Madras High Court directed that the matter be reconsidered.

The order demands tax of about ₹110 crore, with interest and penalty of about ₹99 crore, for a total of ₹208.91 crore. The filing says the earlier order of 29 Dec 2025 had a higher demand, and that the demand has now been reduced to ₹208.91 crore.

The bank says the main issues are the taxing of exempt income such as interest on investments, profit on sale of securities and exchange profit, and the taxing of estimated income that it says it did not collect. It also says the department did not accept the GSTR-9C reconciliation statement it filed, which it says tallies with its financials. The bank says it complies with GST rules, that the audit did not point to any evasion of income, and that it will take appropriate legal remedies.

Inference

This is a revised demand after a court-directed rehearing, and the amount is lower than the earlier order. The bank disputes it and plans to challenge it, so the final liability is not yet settled.

The filing does not say how the amount compares with the bank’s profit or whether it has made a provision. Those would appear in the bank’s financial statements.