Kotak Mahindra Bank Limited informed that the Bank has, on April 18, 2024, received an order dated April 18, 2024 from the office of Assistant Commissioner of State Tax (Audit) at Mohali, Punjab, levying an amount of INR 4,536,219 towards Goods and Services Tax (GST) and interest of INR 4,489,738 and a consequential non-discretionary penalty @ 10% of tax amounting to INR 453,622 under Section 73 of the Punjab Goods and Services Tax Act, 2017 (PGST Act) /The Central Goods and Services Act, 2017 (CGST Act), The above demand has arisen mainly on account of alleged non-reversal of input tax credit (ITC) against the credit notes issued by the suppliers and other ineligible ITC during the financial year 2018-19. The Bank believes that it has adequate grounds to support its position in the matter and would prefer an appeal against the aforesaid order, under the applicable laws. The impact of the above order would be limited to the amount of levy payable by the Bank under the aforesaid order.