High Court Sets Aside ₹2.31 Billion GST Demand Against IRFC

The Madras High Court has set aside the Goods and Services Tax department's demand of ₹2.31 billion against Indian Railway Finance Corp. Ltd and directed the department to reconsider the matter.

The court has directed IRFC to file its response with the department within four weeks. Following this, the department is required to issue a 14-day notice for a personal hearing. After the hearing concludes, the department must promptly pass appropriate orders in accordance with the law.

In December, the department had disallowed certain GST credits for 2020-21 and raised a demand for the reverse charge mechanism. This GST demand included ₹2.1 billion in tax and a penalty of ₹209.6 million.