IRCTC Hit With Tax Demand and Show Cause Notice for Rs 3.93 Crore

The Indian Railway Catering and Tourism Corporation (IRCTC) found itself in a challenging situation after receiving a demand cum show cause notice from the Additional Commissioner of CGST Delhi South Commissionerate on April 8th, 2024. The notice, pertaining to the fiscal year 2018-2019, outlined various discrepancies and alleged violations, indicating a total demand amounting to Rs 3.93 crore.

The notice pointed out several discrepancies, including a mismatch in tax liability between GST returns amounting to Rs 68.70 lacs, liability on account of Input Tax Credit (ITC) requiring reversal due to non-filing of GST returns or cancellation of GSTN of respective suppliers, with a sum of Rs 4.15 lacs, and interest on late filing of GSTR-3B reaching Rs 0.005 lacs. Additionally, there is a liability on account of non-reversal of ITC under section 17 read with Rule 42 of the CGST Act, totaling Rs 2.85 crore. The notice also imposed a penalty of Rs 35.73 lacs for the aforementioned discrepancies.

This places IRCTC under a financial exposure of Rs 3.93 crore due to the determined liabilities by the department. However, it’s essential to note that the demand specified in the Summary Order issued in Form GST DRC-07 is subject to litigation. IRCTC has the option to appeal against this order within three months from the date of its communication.

Source : https://taxationnote.com/irctc-hit-with-tax-demand-and-show-cause-notice-for-rs-3-93-crore/