Indian Railway Finance Corporation Limited — Important, 11-12-2024: General Updates

Indian Railway Finance Corporation (IRFC) has received a GST demand order from the Office of the Assistant Commissioner in Tamil Nadu, totaling ₹230.55 crore, which includes a tax demand of ₹209.59 crore and a penalty of ₹20.96 crore. The demand is related to disallowed GST credit and pertains to the financial year 2020-2021.

The company is evaluating its options, including the possibility of filing an appeal, as it believes the demand is not maintainable. Furthermore, IRFC expects to recover these amounts through tax adjustments under its leasing arrangement with the Ministry of Railways (MoR). Overall, the company does not anticipate any material impact on its financial condition or operations due to this order. Watch closely for future developments regarding the appeal process and potential tax recoveries.