Equitas Small Finance Bank Limited announced that the Bank has received an Order from the Goods and Services Tax (GST) department, Deputy Commissioner of State Tax, Maharashtra on April 15, 2024 with a tax demand amounting to INR 4,48,715 /- (including interest of INR 2,23,847 and penalty of INR 20,442) for the Financial year 2018-2019 on account of discharge of reverse charge GST liability. Nature and details of the action(s) taken, or order(s) passed: Order under Section 73 read with Sec 50 & 122 of Maharashtra Goods and Services Tax Act, 2017, for Financial Year 2018-19. Date of receipt of direction or order, including any ad-interim or interim orders, or any other communication from the authority: 15th April, 2024; Details of the violation(s)/contravention(s) committed or alleged to be committed: The Taxpayer has paid INR 1.136 million as Service charges to Ministry of Road Transport and Highways for accessing database of Vahan portal.

Maharashtra GST Authorities contention is that, as per Notification 12/2017, Entry no. 9, recipient of service has to discharge liability on the said transaction. Impact on financial, operation or other activities of the listed entity, quantifiable in monetary terms to the extent possible: INR 448,715 including interest and penalty.

There is no material impact on financial, operation or other activities of the Bank due to the Tax, Interest and Penalty payable. This Order is currently appealable, and the Bank will make an assessment to exercise the right to appeal.