Indian Railway Finance Corporation Faces Rs 549 Crore GST Demand Over Alleged Excess ITC Availment for FY 2022-23:

Indian Railway Finance Corporation Limited has received a show cause notice (SCN) from the Assistant Commissioner of State Tax, Delhi Zonal Unit (GST authorities), on account of excess ITC (Input Tax Credit) availment of Rs 305.38 crore, on the ground of non-reconciliation of information for the Financial Year (FY) 2022-23, along with applicable interest and penalty.

The said order was received by the company on August 24, 2026, and was passed under Section 73 of the Central Goods and Services Tax (CGST) Act, 2017.

The total GST demand levied on the company, including interest and penalty, is Rs 549.32 crore. The company has clarified that the present action does not have any immediate impact on its financial, operational, and business activities at the current stage.

Presently, the company is in the process of evaluating the notice. Upon successful evaluation, the company will file a detailed reply to the notice within the prescribed time limit, based on advice from its tax consultant, and will pursue the desired legal remedies.

Indian Railway Finance Corporation Limited has made the aforementioned disclosure to the National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE), in pursuance of Regulation 30 of SEBI [Listing Obligations and Disclosure Requirements] Regulations, 2015, vide an Intimation No: IRFC/SE/2026-27/37, dated August 24, 2026.