Indian Railway Finance Corporation (IRFC) has received a Show Cause Notice (SCN) from the Assistant Commissioner of State Tax, a GST Authority. The notice, dated 24th August 2026, relates to an alleged excess input tax credit (ITC) claim of ₹305.38 crore for FY 2022-23. The total demand, including applicable interest and penalty, amounts to approximately ₹549.32 crore. IRFC is evaluating the SCN and will file a detailed reply.
Show Cause Notice Received by IRFC
Indian Railway Finance Corporation Limited (IRFC) announced that it has received a Show Cause Notice (SCN) from the Assistant Commissioner of State Tax, Delhi Zonal Unit, on 24th August 2026. This notice has been issued under Section 73 of the Central Goods and Services Tax Act, 2017.
Details of the Tax Demand
The SCN primarily concerns an alleged excess claim of input tax credit (ITC) amounting to ₹305,38,46,775 (Rupees Three Hundred Five Crore Thirty-Eight Lakh Forty-Six Thousand Seven Hundred Seventy-Five Only). This alleged excess claim pertains to the financial year 2022-23, reportedly due to non-reconciliation of information. The total amount demanded, including applicable interest and penalty, is stated to be ₹549,32,42,846 (Rupees Five Hundred and Forty-Nine Crore Thirty-Two Lakh Forty-Two Thousand Eight Hundred and Forty-Six Only).
Company’s Response and Financial Impact
IRFC is currently evaluating the SCN. Based on the advice from its tax advisors, the company plans to file a detailed reply with the adjudicating authority within the stipulated timelines. IRFC also intends to pursue all available legal remedies. At this stage, the company anticipates no immediate financial impact as it is in the process of assessment and response.
Source: BSE
