IRCTC faces tax demand cum show cause notice for Rs 3.93 crore

The Indian Railway Catering and Tourism Corporation (IRCTC) received a demand cum show cause notice, on 08.04.2024, from the Additional Commissioner of CGST Delhi South Commissionerate. The notice pertains to the fiscal year 2018-19 and outlines various discrepancies and alleged violations.

According to the notice, the total demand amounts to Rs. 3.93 crore. The demand is attributed to several discrepancies identified by the authorities, including:

• Mismatch in tax liability between GST returns: 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: Rs. 4.15 lacs.
• Interest on late filing of GSTR-3B: Rs. 0.005 lacs
• Liability on account of non-reversal of ITC under section 17 read with Rule 42 of the CGST Act: Rs. 2.85 crore.
• Penalty for the aforementioned discrepancies: Rs. 35.73 lacs

As a result, IRCTC faces a financial exposure of Rs. 3.93 crore due to the determined liabilities by the department. However, it is crucial 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: Republic World