J&K Bank has received a demand dated March 23, 2026 from Additional Commissioner, Central GST Commissionerate, Jammu for GST liability of Rs.200,20,80,009.00 (Rupees Two Hundred Crores Twenty Lakh Eighty Thousand and Nine Only) with interest as applicable and penalty of Rs.200,20,80,009.00 (Rupees Two Hundred Crores Twenty Lakh Eighty Thousand and Nine Only).
| Particulars | Details |
| I. Name of the Authority | Additional Commissioner, Central GST Commissionerate, Jammu |
| II. Nature and details of the action(s) taken or order(s) passed | Demand Order dated 23-03-2026. GST : 200,20,80,009/-Penalty: 200,20,80,009/- |
| III. Date of receipt of direction or order, including any ad-interim or interim orders, or any other communication from the authority | March 23, 2026 at 05:46 P.M. |
| IV. Details of the violation(s)/contravention(s) committed or alleged to be committed | Interest Receivable under Transfer Pricing Mechanism (TPM) between Corporate Headquarters and Branches from common pool of funds, has been treated as financial services and GST has been levied thereon. |
| V. Impact on financial, operation or other activities of the listed entity, quantifiable in monetary terms to the extent possible | Demand order pertains to the period beginning from February 23, 2020 till March 2024 for transactions under the Banks Transfer Price Mechanism (TPM). In a bank, the common resource – funds or liquidity is shared by all the business units. Therefore the most important function of TPM is to provide a basis for the exchange of funds between different business units of a bank. TPM is an internal allocation and measurement mechanism for determining the pricing of incremental loans/investments/deposits and for determining the profit contribution of various lending and borrowing units of a bank. It is critical component of the profitability measurement process, as it allocates the major component of profitability in a bank, Net Interest Margin (NIM). It’s a management decision tool and is useful means to identify the areas of strength and weaknesses within the bank. Since the Bank is, in law a single legal entity constituting of its Corporate Headquarter as also all the branches, it is legally obliged to reflect its financial statements prepared under the provisions of regulatory laws applicable to it for its whole entity. All the TPM entries are purely notional in nature and when entity levelfinancial statements are prepared, the |
The largest public sector bank in India – State Bank of India (SBI) has also received a huge income tax demand notice of ₹63,37,52,52,550 (over ₹63,000 crore) from the Income Tax Department. This demand has been raised after a scrutiny assessment for the Assessment Year (AY) 2023–24.
The order includes disallowances made by the tax authorities on various grounds, which has resulted in the large tax demand, including interest. SBI also stated that it is already involved in litigation on similar issues in previous years, indicating that such disputes are ongoing.
