Private lender Equitas Small Finance Bank Ltd on Monday said its proposed Goods and Services Tax assessment has been substantially reduced to ₹23.95 crore from ₹533.81 crore following a personal hearing and subsequent communication from the GST authority.
The revised amount comprises tax of ₹21.67 crore, interest of ₹0.11 crore and penalty of ₹2.17 crore. The original show cause notice had proposed tax of ₹485.18 crore, interest of ₹0.11 crore and penalty of ₹48.52 crore. The personal hearing in relation to the SCN was held on September 25, 2026.
The notice was issued by the Office of the Deputy Commissioner , Central-III Zone, Commercial Taxes Department, Government of Tamil Nadu, under Section 73 of the Central Goods and Services Tax Act, 2017 and the Tamil Nadu Goods and Services Tax Act, 2017 for financial year 2022-23.
Certain specified receipts and reconciliation items remain subject to verification of supporting documents, the bank said. Equitas Small Finance Bank said it believes that the remaining amount is also eligible for exemption. The bank will submit further evidence and documents to the authorities to establish its position and will provide updates on further developments.
Last week, ESAF Small Finance Bank said its board had approved raising up to ₹500 crore through private placement of NCDs to augment Tier II Capital. The proposed NCD issue will comprise Listed, Rated, Taxable, Unsecured, Transferable, Redeemable and Fully Paid Up Basel II-compliant Lower Tier II subordinated bonds.
Shares of ESAF Small Finance Bank Ltd ended at ₹43.58, up by ₹0.81, or 1.89%, on the BSE.