IRFC Receives ₹231-Crore GST Demand Notice From Tamil Nadu

The Indian Railway Finance Corporation (IRFC) is a public sector entity in India that secures funding for its operations and growth through capital markets and various borrowing methods. While the Ministry of Railways holds administrative oversight of the organisation, the majority stake is owned by the Government of India.

IRFC Received a GST Demand of ₹230.55 crore

On December 12, 2024, IRFC announced that it had received a goods and services tax (GST) demand order amounting to ₹230.55 crore from the tax authority in Tamil Nadu. This notice, issued by the assistant commissioner from the Chennai North sales tax division, includes a tax demand of ₹209.59 crore along with a penalty of ₹20.96 crore. 

The public sector company explained that the tax officer has disallowed certain GST credits and has raised the GST demand regarding the reverse charge mechanism for the financial year 2020–21.

IRFC Statement 

IRFC stated that it believes the demand is unjustifiable and is currently exploring all possible options, including the possibility of filing an appeal against the order.

The company’s statement highlighted that “there is a provision for recovery of taxes and adjustments related to the leasing arrangement with the Ministry of Railways.” Additionally, IRFC indicated that it does not foresee any significant effects on its finances, operations, or other activities as a result of the tax demand notice.

IRFC Quarterly Results

For the quarter ending 30 September, IRFC reported a 4.4% increase in net profit, rising to ₹1,613 crore from ₹1,545 crore during the same period last year. The corporation’s income grew by 2%, reaching ₹6,900 crore in the July-September quarter compared to ₹6,762 crore in the equivalent quarter of the previous year.

Indian Railway Finance Corp Ltd. Share Price Performance 

Indian Railway Finance Corp.’s stock price peaked at ₹166.90 today at 2:26 PM on the NSE, where it was trading at ₹162.35 per share.

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