IRFC shares in focus as Madras HC sets aside Rs 230.55 cr GST demand

IRFC shares will be in focus after the Madras High Court set aside a Rs 230.55 crore GST demand, remanding it back for fresh review. The court allowed IRFC’s writ petition, offering relief from immediate tax liability. The company clarified there's no financial statement impact or pending litigation against key personnel. IRFC shares closed 0.66% higher at Rs 129.12.

Shares of Indian Railway Finance Corporation (IRFC) will be in focus on Thursday, April 17, following a significant legal development in the company’s ongoing Goods and Services Tax (GST) litigation. The Madras High Court has allowed IRFC’s writ petitions and set aside the impugned GST demand order amounting to Rs 230.55 crore.

The case has been remanded back to the respondent authority for fresh consideration.“This is in continuation of the intimation filed by the company vide No: IRFC/SE/2024-25/56 dated December 11, 2024, disclosing the details of the GST demand order received by the company, and to inform about a development in relation to the same. The company has filed a writ petition before the Madras High Court,” IRFC said in an exchange filing.

In its order, the High Court directed the company to submit its reply or objection within four weeks from the date of receipt of the order, along with supporting documentation. Upon submission, the tax authority is required to reconsider the matter and conduct a personal hearing, issuing a 14-day notice to IRFC in advance.With these directions, the writ petition stands disposed of, and all connected miscellaneous petitions have been closed.

Also read: New deals a positive, but client loss a worry for WiproThis legal development marks a key relief for IRFC, removing a large tax liability from its immediate obligations, pending further review by the tax authorities. The company also stated that there is no direct impact on its financial statements.Additionally, the company clarified that no litigation is pending against any key management personnel and that no settlements related to the matter have occurred, as per its regulatory filing.

IRFC shares closed 0.66% higher at Rs 129.12 on the NSE on Wednesday.

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