Indian Railway Finance Corporation (IRFC) has received a ₹396.91 crore show-cause notice from Bihar tax authorities over Goods and Services Tax (GST) matters for FY23. According to reports from CNBC TV18, the notice was issued by the Office of the Joint Commissioner of State Tax, Hajipur Circle, Hajipur, and received on September 29, 2026. The notice relates to the period from April 2022 to March 2023 under Section 73 of the Bihar Goods and Services Tax (BGST) and Central Goods and Services Tax (CGST) Act, 2017. IRFC confirmed in an exchange filing that the notice includes applicable interest and penalty.
IRFC stated that the issues raised in the notice are generic in nature and the company is evaluating them. As reported by CNBC TV18, the company will consult its tax advisors and file a detailed response with the adjudicating authority within the prescribed timeline. IRFC also clarified that it will pursue all legal remedies available to it. Since the matter is still at the show-cause notice stage and no order has been issued, the actual financial impact cannot be determined at this point.
According to CNBC TV18, the ₹396.91 crore amount mentioned in the notice includes applicable interest and penalty. IRFC clarified that no penalty, restriction or sanction has been imposed as a result of the notice. The company emphasized that any penalty, if applicable, can be determined only after an order is passed. The notice was issued under the Bihar Goods and Services Tax (BGST) and Central Goods and Services Tax (CGST) Act, 2017.
Shares of IRFC have fallen 37% year-to-date, reflecting sustained investor concerns over the potential financial implications of the tax dispute. As reported by CNBC TV18, the market reaction reflects ongoing investor concerns about the GST notice, though the company has clarified that no immediate penalties have been imposed. The stock's performance indicates sustained market uncertainty around the tax matter.
