GST notice to Jammu and Kashmir : Jammu and Kashmir Bank has received a GST notice of Rs 16,000 crore. A fine of Rs 8,161 crore has also been imposed along with GST demand of Rs 8,161 crore from the bank. That is, the total amount has reached Rs 16,322 crore. Most importantly, the total market value of the bank is around Rs 11,300 crore. As soon as the news broke, a sharp change began in the stock market. Shares of the company fell sharply.
Bank shares fall sharply after notice
The notice was sent to the bank on February 4, 2025 from the GST Commissioner of Jammu. Shares of Jammu and Kashmir Bank fell 3.95 per cent to an intraday low of Rs 99.26 during the trading session in the stock market today. The bank’s stock opened at Rs 103.75 against a close of Rs 103.35, but it was jolted by the news of the GST notice.
The bank has given notice to the share exchanger
In the share swap, the bank said that on February 4, 2025, it has also been fined for paying GST of Rs 81,30,66, 42,768 from the Joint Commissioner of the Central GST Commissioner of Jammu. However, the bank has also said in its statement that this GST demand will not affect the financial, operational or any other banking activity of the bank.
Due to this, the notice came
J&K Bank said the interest received under the transfer pricing mechanism (TPM) between corporate headquarters and branches is treated as financial services and is subject to GST. The bank said the most important function of the TPM is to provide the basis for the transfer of funds between the various business units of the bank. It is wrong to impose GST in such a situation.
Regulatory action has already been taken
This is not the first time that regulatory action has been taken against the bank. Last week, the RBI had imposed a fine of Rs 3.31 crore on the bank for not complying with KYC rules.
