Shares of Jammu and Kashmir Financial institution Ltd fell 3% in the course of the buying and selling session on Wednesday, 5 February, after the corporate obtained an astounding Rs 16,000-crore GST discover. The discover additionally consists of the GST penalty quantity.
The financial institution, in a regulatory submitting, stated, “Financial institution has obtained a requirement dated 4 February 2025 from Joint Commissioner, Central GST Commissionerate, Jammu for GST legal responsibility of Rs. 81,30,66,42,768 with curiosity as relevant and penalty of Rs. 81,30,66,42,768.”
The submitting added, “The financial institution has taken applicable authorized recourse within the matter and primarily based on our evaluation and authorized course adopted by the financial institution and professional opinion, we consider that the demand order shall haven’t any materials affect on the financials, operations or different actions of the financial institution.”
J&Ok Financial institution has said that the demand order gained’t have a big affect on its general enterprise operations, monetary scenario, or actions.
J&Ok Financial institution said that curiosity receivable below the switch pricing mechanism (TPM) between its company headquarters and branches from a standard pool of funds has been categorized as a monetary service, making it topic to GST.
The demand discover pertains to transactions below the financial institution’s TPM for the interval 8 July 2017 to 31 March 2020. Inside a financial institution, funds or liquidity act as a shared useful resource utilized throughout numerous enterprise models.
At 3:30 pm, the shares of J&Ok Financial institution closed 2.27% increased at Rs 101 on NSE.
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