ICICI Bank Ltd and Kotak Mahindra Bank Ltd saw their shares fall on Friday, a day after the Goods and Services Tax (GST) Department issued demand notices to the private sector lenders. The notices amounted to Rs 26.8 crore for ICICI Bank and Rs 62.3 lakh for Kotak Mahindra Bank.

Shares of ICICI Bank and Kotak Mahindra Bank reached an intraday low of Rs 993.70 and Rs 1,890.05, respectively, down 1.2% and 1.6% from their respective last closing prices on the National Stock Exchange (NSE). ICICI Bank shares closed 0.75% lower at Rs 998.40, while the stock prices of Kotak Mahindra Bank closed 0.9% lower at Rs 1,904.00.

In an exchange filing dated December 28, ICICI Bank said that the Tamil Nadu Goods and Services Tax (GST) Department had issued a demand notice of Rs 24.37 crore along with a penalty of Rs 2.43 crore. 

The notice comes after an assessment of tax payment under Section 73 of the Tamil Nadu Goods and Services Tax Act, 2017. ICICI Bank added that it plans to contest the order through an appeal.

In a separate exchange filing, Kotak Mahindra Bank announced that it received a show cause cum demand order from the Assistant Commissioner of Central Goods and Service Tax (GST) and Excise in Cuttack, Odisha, levying an amount of Rs 57.20 lakh towards CGST along with applicable interest and penalty of Rs 5.1 lakh.

Kotak Mahindra Bank said that it plans to contest these orders, highlighting substantial grounds for its appeal. The bank believes that the demand has disallowed Input Tax Credit (ITC) on certain expenses during the 2017-18 and 2018-19 fiscal years and that it can successfully challenge the disallowance.