Huge Relief for IRFC! Madras HC Cancels Rs 353 Crore GST Demand:

Indian Railway Finance Corporation (IRFC) has informed the stock exchanges that the Madras High Court has provided relief in its GST-related tax dispute. In an order dated July 27, 2026, received by the company on July 29, the court cancelled the earlier tax order and recovery notice issued against IRFC and sent the matter back to the tax department for a fresh review.

The case relates to a GST demand of Rs 353.18 crore raised by the Assistant Commissioner (State Tax), Chennai. The demand was on account of input tax credit (ITC) appearing in GSTR-2A but not claimed by the company and treated as lapsed, among others related issues.

The High Court directed the tax authorities to reconsider the matter after giving IRFC a fair opportunity to present its case, including a personal hearing. A fresh order must be issued within three months from the date the tax department receives a copy of the court's order.

With this ruling, the earlier Rs 353.18 crore tax demand and recovery notice no longer remain in force for now, and the matter will be decided again by the tax authorities after a fresh review.