Yes Bank slapped with Rs 38 crore in GST fines for violating domestic remittances norms

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Midsized private sector lender Yes Bank has paid Rs 38 crore in fines to the GST department for alleged violations in domestic remittances, officials said Friday. A bank official, however, said the money has been paid “in protest” and the lender believes that it has not violated any norms. The bank, which saw Friday its stocks bleed as much as over 35 per cent intra-day and close with a loss of 29 per cent after news came out that the RBI has asked incumbent CEO Rana Kapoor to step aside by end of next January, has paid the fine earlier this week. Many peers have received similar demands and the “in protest” protest payment will be taken to its logical end, the officials added.

The issue relates to remittances by migrants from urban pockets to their homes in rural areas. The tax department feels the bank has violated norms and under-paid the tax, while the bank feels the opposite. Over Rs 32 crore has been paid to the GST department, while Rs 6 crore has been paid in service tax which has been replaced by GST from July 2017. The Yes Bank official claimed that there was no formal demand or even a show cause notice to the bank and the payment was made on the basis of the demand made during “bilateral meetings” with the tax authorities.

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