5432432026-09-225432432026-09-22in-capmkt:AtTheTimeOfBecomingPartyToLitigationOrAssessmentOrAdjudicationOrArbitrationOrDisputeMember5432432026-09-22OppositePartyAsPerSubPara8OfParaBDomain1EQUITASBNKEQUITAS SMALL FINANCE BANK LIMITED543243NOTLISTEDINE063P01018Pendency of any litigation(s) or dispute(s) (Sub-para 8-Para B)At the time of becoming the party to any litigation, assessment, adjudication, arbitration or disputeNewfalse2026-09-2101:28:002026-09-22Office of the Deputy Commissioner (ST), Central-III Zone, Commercial Taxes Department, Government of Tamil Nadu2026-09-21AgencyBefore the office of the Deputy Commissioner (ST), Central-III zoneCompanyEquitas Small Finance Bank LimitedThe SCN, inter alia, proposes tax in relation to: short payment of tax on outward supplies; difference in turnover described in the SCN as suppressed turnover; short payment under reverse charge; proposed disallowance of exemption on turnover, including interest income, amounting to Rs. 479,33,04,094/-; credit notes; inter-State branch transfer; rate differences; excess ITC; and ITC identified as ineligibleThe aggregate amount proposed in the SCN is Rs. 533,81,24,251/-, comprising tax of Rs. 485,18,30,588/-, interest of Rs. 11,10,604/- and penalty of Rs. 48,51,83,059/-.f the proposed tax demand, Rs. 479,33,04,094/- relates to the proposed disallowance of exemption on turnover, which substantially pertains to interest income earned from loans and advances. The Bank’s preliminary assessment is that such interest income is specifically exempt under Entry 27(a) of Notification No. 12/2017-Central Tax (Rate) dated June 28, 2017, issued under Section 11(1) of the CGST Act, 2017, except interest involved in credit card services. The Bank has consistently followed this statutory treatment, and the relevant assessments for prior years were completed without treating such exempt interest income as taxable turnover. Based on its preliminary assessment, the Bank believes that it has substantive factual and legal grounds to contest all the matters raised in the SCN, including the proposed disallowance of exemption on interest income and the other proposed tax, interest and penalty components. The SCN is at the show-cause stage and does not presently result in a crystallised liability. The Bank will submit a detailed response, supported by reconciliations and records. The financial impact, if any, will depend upon the outcome of the proceedings and cannot presently be determined.Rs. 533,81,24,251/-, comprising tax of Rs. 485,18,30,588/-, interest of Rs. 11,10,604/- and penalty of Rs. 48,51,83,059/-.