Yes Bank Limited received an Order from the Goods and Services Tax (GST) department, Bihar on April 19, 2024 raising demand for differential tax liability on outward supply along with interest and levy of a penalty of INR 20,000 /-. This penalty has been imposed in accordance with Section 73(9) of the Central Goods and Services Tax Act, 2017 ("CGST Act") and Bihar Goods and Services Tax Act, 2017. Levy of penalty along with tax and interest on outward supply.

The Tax and interest demand in this matter is below the material threshold limit currently applicable to the Bank. The Bank does not expect any material impact on financial, operation or other activities of the Bank due to the said Order. Separately, the Bank believes that it has adequate legal grounds to reasonably substantiate its position in this matter and the Bank will pursue an appeal /evaluate other legal options against the said Order.