RBL Bank has received a GST demand order worth ₹103.77 crore, including interest and penalty, for the financial year 2020-21 from the Mumbai tax department, according to the latest regulatory filing. The notice, dated August 27, 2026, was issued by the Assistant Commissioner of State Tax, Mumbai, and relates specifically to input tax credit claimed by RBL Bank's digital banking business for FY21. The bank has also received a show cause notice from tax authorities and will submit its response within the prescribed timelines. As reported by the exchange filing, the bank believes it has adequate grounds to contest the matter on merits based on its assessment.
According to the bank's filing, RBL Bank's assessment is supported by favourable orders received from GST authorities on an identical issue for fiscal 2018-19, 2019-20 and 2020-21. The bank stated that based on its assessment including these favourable orders, it believes that it has adequate grounds to contest the matter on merits. The proposed demand relates to input tax credit availed under the separate GST registration obtained by RBL Bank for its digital banking business vertical. The bank has indicated it does not, at this stage, reasonably expect the matter to have any material adverse impact on its operations or financial position.
RBL Bank shares were trading 1.25% lower at ₹380.60 on the NSE at 3:11 pm on Friday, as reported by CNBC TV18. The stock had declined 1.4% during intraday trading and saw trading volumes surge to more than 993,000 equity shares during market hours. On a year-to-date basis, RBL Bank shares have gained 21% in 2026 and are up 4.6% in the last one-month period. The stock has delivered more than 134% returns over the last five years and more than 52% returns in the past one-year period. According to exchange data, RBL Bank stock was trading 2.7% lower in the last five market sessions.
