New Delhi: State-owned Indian Railway Finance Corporation (IRFC) on Wednesday said it has received a show-cause notice for over Rs 396.90 crore from Bihar GST authorities for the 2022-23 financial year.

In a regulatory filing, IRFC said it received the notice on September 29 and is evaluating the issues raised. The company, based on advice from its tax advisors, will file a detailed response before the adjudicating authority.

Follow The PSUWatch Channel on WhatsApp

"As the case is at show cause notice stage only and order has not yet been issued, so expected financial implications cannot be quantified at this stage. However, the amount indicated in the Show Cause Notice is Rs 3,96,90,78,153.59 inclusive of applicable interest and penalty for the period from April 2022 to March 2023," IRFC said.

The company said the issues raised in the notice are generic in nature and that it is in the process of submitting its reply.

Follow PSU Watch on LinkedIN

Since the matter is currently at the show-cause notice stage, no final tax demand has been imposed on IRFC yet.

Shares of IRFC closed 1.35 percent higher at Rs 79.05 apiece on the BSE on Wednesday.

(PSU Watch is India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy. 👉 Click to join our channel now: PSUWatch WhatsApp Channel. Prefer LinkedIn? Follow PSU Watch on LinkedIN. Click to stay connected on Twitter here and stay updated)