IRFC's shares slipped 1.22% to ₹79.28 on the NSE after the Bihar tax authority issued a ₹396.91 crore show‑cause notice covering FY23 GST matters.
The notice, filed on September 29 under Section 73 of the Bihar Goods and Services Tax Act and the Central GST Act, spans the period from April 2022 to March 2023 and includes accrued interest and penalties.
In a filing, IRFC said the issues are generic and it is evaluating them, consulting tax advisors before submitting a detailed response within the prescribed deadline. The company added that no penalty or restriction has yet been imposed, and any financial impact will only crystallize after an adjudicating order.
The ₹396.91 crore liability, if confirmed, could dent IRFC's cash‑flow outlook for FY24, but the rail‑finance firm has been diversifying, recently disbursing a ₹4,200 crore renewable‑energy loan to DVC. Market watchers note that the company’s core business remains rail asset financing, and regulatory challenges are not unprecedented for the sector.
The stock’s decline reflects investor caution pending adjudication, while analysts expect IRFC to maintain its FY24 guidance on asset‑value growth once the notice is resolved.