{"url":"https://newsforagent.com/news/2026-10-14/city-union-bank-gst-demand-reduced","markdown_url":"https://newsforagent.com/news/2026-10-14/city-union-bank-gst-demand-reduced.md","title":"City Union Bank GST Demand Cut to ₹208.91 Crore","headline":"City Union Bank's Revised GST Demand Falls to ₹208.91 Crore After High Court Remand","description":"City Union Bank received a revised GST demand of ₹208.91 crore for FY22, down from ₹337.79 crore, and plans legal remedies.","section":"Regulation & Approvals","published_at":"2026-10-14T14:53:22+00:00","modified_at":"2026-10-14T14:53:22+00:00","author":"News Desk","key_takeaways":["City Union Bank received a revised GST demand of ₹208.91 crore from the Deputy Commissioner, State Tax, Tanjore, on October 14, 2026.","The revised order demands tax of ₹110.37 crore plus interest and penalty of ₹98.52 crore, down from ₹191.05 crore and ₹143.73 crore.","The dispute covers taxation of exempt income, taxable supply estimation and disallowance of 100% input tax credit within the same PAN-GSTIN structure."],"companies":[{"name":"City Union Bank","is_primary":true,"profile_url":"https://akta.pro/company-profiles/0008tdk/city-union-bank","website":"https://www.cityunionbank.com"}],"source":{"publisher":"ScanX","title":"City Union Bank GST demand reduced to ₹208.91 crore","url":"https://scanx.trade/stock-market-news/companies/city-union-bank-gst-demand-reduced-208-91-crore/53532936"},"other_sources":[],"tags":["Regulation & Approvals","City Union Bank"],"body_markdown":"[City Union Bank](https://akta.pro/company-profiles/0008tdk/city-union-bank) has received a revised Goods and Services Tax demand of ₹208.91 crore from the Deputy Commissioner, State Tax, Tanjore, for the fiscal year 2021-22, down from an earlier claim of ₹337.79 crore. [ScanX](https://scanx.trade/stock-market-news/companies/city-union-bank-gst-demand-reduced-208-91-crore/53532936) reported that the new order was issued on October 14, 2026, under Section 73 of the Tamil Nadu Goods and Services Tax Act, 2017.\n\n## City Union Bank's Revised GST Order\n\nThe revised demand follows a remand order by the Madurai Bench of the High Court of Madras. The original assessment had demanded tax of ₹191.05 crore along with interest and penalty of ₹143.73 crore. The revised order now demands tax of ₹110.37 crore along with interest and penalty of ₹98.52 crore.\n\nThe dispute centers on the treatment of exempt income and input tax credit claims. The GST Department challenged the taxation of portions of exempt income, including interest on investments, profit on sale of securities and exchange profits. It also disputed the estimation of taxable supplies for income not collected or services not rendered, which the department alleges violates Sections 7 and 15 of the TNGST Act 2017, and the disallowance of 100% ITC on supplies within the same PAN-GSTIN structure.\n\nCity Union Bank said the GST Department did not accept the Reconciliation statement in GSTR-9C it filed, which was tallied with financial statements and certified by the Statutory Central Auditors. The bank said it has been regular in GST compliance since the rollout of the tax regime, discharges GST on all charges collected from customers and claims only eligible ITC. It characterized the demand as devoid of legal sanctity and containing factual errors, and said it plans to pursue appropriate legal remedies under the GST Act. The bank expects no material financial implications.\n\n## City Union Bank's Scale and Recent Moves\n\nAccording to akta.pro [company records](https://akta.pro/company-data), City Union Bank is a 121-year-old Indian private sector bank that lends primarily to MSMEs, at 55-60% of its book, and provides gold-backed loans, at 30% of advances, across 1,000 branches. Its full year FY26 net profit was ₹1,326 crore, up 18% from ₹1,123 crore in FY25, and its Q4 FY26 net profit was ₹360 crore, its highest ever quarterly profit, up 25% year on year. Total advances as of Q4 FY26 were ₹66,699 crore, up 26% year on year.\n\n## Earlier City Union Bank Events\n\nIn September 2026, Wizz Financial's Wizzmoni and City Union Bank launched Wizz Voyager, an AI-powered multi-currency travel card built on Visa's network supporting 37 currencies, The Hindu reported. Mastercard and City Union Bank also launched a pilot of Mastercard One Credential in India in September 2026, letting eligible consumers and SMEs link multiple payment accounts to a single tokenised credential, according to CNBC TV18. In August 2026, City Union Bank participated in Axis Capital's India Corporate Day 2026 in Singapore, ScanX reported.\n\n## What Comes Next for City Union Bank\n\nCity Union Bank said it plans to pursue appropriate legal remedies as provided under the GST Act following the October 14, 2026 order.\n","publisher":{"name":"News for Agent","url":"https://newsforagent.com"}}