YES Bank Limited has disclosed that it received a penalty order from the Tamil Nadu Goods and Services Tax (GST) Department pertaining to the financial year 2017-18. The order, issued under Section 74 of the Central Goods and Services Tax Act, 2017 (CGST Act) and the Tamil Nadu Goods and Services Tax Act, 2017 (TNGST Act), imposes a penalty of ₹72,33,030/- in addition to the GST demand and applicable interest.

Key Details of the Order

1. Authority Involved:

   • Issued by the Tamil Nadu GST Department.

2. Nature of the Order:

   • The penalty arises from alleged GST violations during FY 2017-18.
   • The order specifies the demand of GST on various issues along with penalties and interest.

3. Date of Receipt:

   • The Bank received the order on January 3, 2025.

4. Penalty Details:

   • Total penalty amount: ₹72.33 lakh.

Bank’s Response and Next Steps

YES Bank has assured stakeholders of its strong legal and factual basis to substantiate its position in this matter. The Bank has stated that it does not anticipate any material financial or operational impact from the order at this stage.

The Bank plans to:

• Pursue necessary legal remedies against the GST order.
• Continue to comply with applicable regulatory requirements, including hosting updates on its official website.

Impact Analysis

While the penalty amount of ₹72.33 lakh is significant, the Bank maintains that it has a robust case and does not foresee major repercussions on its financial or operational activities.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency with stakeholders.

Conclusion

The penalty imposed by the Tamil Nadu GST department highlights the growing scrutiny of compliance with GST regulations across industries. However, YES Bank’s proactive approach in addressing the issue and its confidence in defending the order should reassure investors and stakeholders.

The Upcoming IPOs in this week and coming weeks are Indobell Insulation, Standard Glass Lining, Quadrant Future, Capital Infra Trust, Delta Autocorp and B R Goyal.

The Current active IPO is   Fabtech Technologies, Davin Sons and Parmeshwar Metal.