Indian Railway Catering And Tourism Corporation Limited — Important, 18-03-2025: General Updates

An Order-In-Original from the Commissioner of Central Tax (Delhi West) has been received, indicating a total demand of ₹129.95 Cr against IRCTC. This includes a penalty of ₹65.03 Cr related to various discrepancies in service tax payments for the periods 2016-17 and 2017-18. Specific short payments are noted for Tour Operator Services, Outdoor Catering, and other taxable services, with additional penalties for incorrect filing of returns. The financial exposure of ₹129.95 Cr may pose a significant impact on the company's operations. However, since the demand is litigative, IRCTC plans to contest the order within the legal timeframe, presenting an opportunity for potential adjustment in liability. Investors should watch closely as litigation unfolds.