The notice, which includes applicable interest and penalty, was issued by the Office of the Joint Commissioner of State Tax, Hajipur Circle, Hajipur, IRFC said in an exchange filing on Wednesday.
The company received the notice on September 29 under Section 73 of the Bihar Goods and Services Tax (BGST) and Central Goods and Services Tax (CGST) Act, 2017.
The notice relates to the period from April 2022 to March 2023.
What IRFC said about the notice
IRFC said the issues raised in the notice are generic in nature and that it is evaluating them.
The company said it will consult its tax advisors and file a detailed response with the adjudicating authority within the prescribed timeline. It also said 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, IRFC said the actual financial impact cannot be determined at this point.
The ₹396.91 crore amount mentioned in the notice includes applicable interest and penalty.
IRFC also clarified that no penalty, restriction or sanction has been imposed as a result of the notice. Any penalty, if applicable, can be determined only after an order is passed.
Shares of IRFC ended 1.22% lower at ₹79.28 on the NSE on Wednesday, September 30.
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