CSB Bank slapped Rs6.89cr penalty by Mumbai GST Intelligence

KOCHI: The Thrissur-headquartered CSB Bank has been slapped a penalty of Rs6.89 crore by GST Intelligence – Mumbai Zonal Unit, for alleged availment of ineligible Cenvat credit for the financial year 2016-17.

In a statement, CSB Bank stated that the bank does not agree with the order and will take appropriate action against the order.

CENVAT Credit refers to the input tax credit that manufacturers and service providers were entitled to claim under the Central Value Added Tax (CENVAT) scheme, which was part of the pre-GST (Goods and Services Tax) regime.

CENVAT allowed businesses to offset the tax paid on inputs (such as raw materials or services) against the tax payable on the final product or output service.

Another penalty

On August 12, a penalty of Rs1.86 crore has been imposed on CSB Bank for non-compliance with certain directions issued by the RBI on ‘Guidelines on Managing Risks and Code of Conduct in Outsourcing of Financial Services by banks’ and ‘Master Circular on Branch Authorisation’.