IRCTC Faces Rs. 3.93 Cr GST Demand Amidst GST Returns and ITC Discrepancies

The Indian Railway Catering and Tourism Corporation ( IRCTC ) faced a demand of Rs. 3.93 crore in Goods and Service Tax amidst discrepancies in Goods and Service Tax ( GST ) returns and Input Tax Credits.

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 Central Goods and Service Tax ( 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.

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 lakhs
• 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 lakhs
• Interest on late filing of GSTR-3B: Rs 0.005 lakhs
• 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 lakhs

As a consequence, IRCTC finds itself liable for Rs. 3.93 crore as determined by the department. It’s important to notice that the demand outlined in the Summary Order issued via Form GST DRC-07 is currently under dispute. IRCTC retains the option to challenge this order within three months from the date of its receipt.

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