Awaiting price reaction for this filing.
Jammu & Kashmir Bank has received a GST demand order dated June 9, 2025 from the State Tax department in Haridwar, Uttarakhand, for Financial Year 2018-2019. The total demand is approximately ₹7.83 lakh, comprising a tax demand of ₹2.46 lakh, interest of ₹2.91 lakh, and a penalty of ₹2.46 lakh. The issue relates to Input Tax Credit (ITC) that the bank claimed, which the authorities allege is invalid because the supplier's GST registration was cancelled retrospectively. The bank plans to file an appeal against the order, stating that the demand lacks legal merit and will have no material impact on its financials, operations, or other activities.
The demand amount is very small relative to the bank's size and is unlikely to affect the stock price. With an appeal pending, the financial impact remains negligible unless the order is upheld, which the bank considers unlikely.