GST demand of ₹200cr served to J&K Bank
Business
Jammu and Kashmir Bank has been served a hefty ₹200.20 crore GST demand by the tax department, covering transactions from early 2020 to March 2024 under something called the Transfer Price Mechanism (TPM).
The bank says these TPM entries are just notional and basically cancel each other out when you look at the whole bank's finances.
Bank insists TPM entries are notional
J&K Bank is pretty confident this demand won't hold up in court and insists it won't affect its day-to-day business or financial health.
There's already a high court stay on a similar case, which adds to their confidence.
The bank also points out that its TPM method follows RBI guidelines set back in 1999 for managing risk and balancing funds within banks.