IRFC receives GST show-cause notice citing Rs 396.91 crore
As filed · Indian Railway Finance Corporation Limited has informed the Exchange about Pendency of Litigation(s)/dispute(s) or the outcome impacting the Company
What happened
FactIndian Railway Finance Corporation received a show-cause notice on 29 September 2026 from the Joint Commissioner of State Tax, Hajipur Circle, under Section 73 of the BGST/CGST Act, 2017. The notice indicates Rs 3,96,90,78,153.59 inclusive of applicable interest and penalty for April 2022 to March 2023; IRFC said it is evaluating the notice and plans to file a detailed reply.
Why it matters
CapitSignal interpretationLitigation creates a contingent liability that is not in reported profit until it crystallises.
Scale
- 1.5% of FY24 revenue
₹396.91 Cr stated in the filing against ₹26,645.36 Cr revenue (FY24, standalone)
Source: financial_facts · xbrl
What management said before
Prior statements by this company that CapitSignal has recorded changing.
Guidance
DelayedI am pleased to note that IRFC has already achieved its annual sanction guidance of ₹60,000 crore for FY 2025–26 by the end of Q3, reflecting strong momentum and disciplined growth.
Next 5 years of time, we are in a very good position that anybody with a good asset is coming to us, we are there to cater to them.
Change
FactImplication
CapitSignal interpretationWatch next
Fact- Amount claimed against the company
- Whether a provision has been made
- Next hearing or order date
- Midterm is 2030 and the long term is 2037 for a 10-year plan. (management committed by FY37)
- I am pleased to note that IRFC has already achieved its annual sanction guidance of ₹60,000 crore for FY 2025– (management committed by FY26)
Evidence
- Indian Railway Finance Corporation Limited has informed the Exchange about Pendency of Litigation(s)/dispute(s) or the outcome impacting the Company(opens the original filing in a new tab)
- Earlier statement · FY20
- Latest statement · Q2 FY25
- Earlier statement · Q2 FY25
How CapitSignal classified this
- Reasoning:
- The indicated amount is a potentially significant tax exposure, although IRFC said no order has been issued and the financial implications cannot yet be quantified. The company intends to pursue available legal remedies.
- Matched on:
- the filing's own subject line
- Confidence in the event type:
- 75%