J&K Bank Faces Rs 400 Crore GST Demand, Including Interest and Penalty

J&K Bank Faces Rs 400 Crore GST Demand, Including Interest and Penalty

Jammu and Kashmir Bank Ltd (J&K Bank), one of India’s oldest private sector banks, issued a disclosure to the stock exchange regarding receipt of a demand notice worth Rs 400 crore from the GST department.

Background of the case

The company stated that it has received a demand notice of Rs 400 crore from the Additional Commissioner, Central GST Commissionerate, Jammu, for a GST Liability of Rs 200,20,80,009.00 with interest as applicable, along with an equal amount of penalty.

Key Details

Particulars	Details
Issuing Authority	Additional Commissioner, Central GST Commissionerate, Jammu
Demand Amount	Rs 400 crore, including penalty and interest
Date of Order	23-Mar-26

Experts Point of View

Financial experts said such tax demands are subject to legal and procedural review, and companies often seek clarification or challenge them through appropriate forums.

Bank’s Response

The notice is significant because it could affect the bank’s finances and compliance rules. However, the bank has not yet clarified whether it will challenge the demand or pay it.