IRCON International faces ₹72 crore GST input tax credit notice

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Blacklitt Research26 October 20263 min read

An unfinished railway platform with a footbridge, tracks and a parked motorcycle at dusk — Bhuvanaalla, via Wikimedia Commons (CC0). Illustrative image.

IRCON International (NSE: IRCON) has received a GST notice from the Joint Commissioner CGST Audit Commissionerate, Dehradun, over ₹72.41 crore of input tax credit, it said in a filing on 26 Oct 2026. The company has filed a writ petition directly in the High Court of Uttarakhand, which asked the department to file its counter within 4 weeks.

Key highlights

Input tax credit in dispute: ₹72.41 crore
Expected financial implication: ₹72.41 crore
High Court: department counter due within 4 weeks
IRCON reply to show cause notice due within 2 weeks

The GST matter in numbers

Item	Detail
Authority	Joint Commissioner CGST Audit Commissionerate, Dehradun
Issue	Availment of inadmissible input tax credit on works contract invoices from sub-contractors
Amount in dispute	₹72.41 crore (₹72,41,05,710)
Expected financial implication	₹72.41 crore, as stated, due to compensation, penalty or similar
Forum	High Court of Uttarakhand at Nainital, writ petition filed by IRCON directly
Hearing	26 Oct 2026
Department counter	Within 4 weeks
IRCON reply to show cause notice	Within 2 weeks

What the notice concerns

The GST notice asks IRCON to submit its reply or explanation on the issue as the department understands it. The department's issue is the availment of inadmissible input tax credit on invoices for works contract services supplied by sub-contractors. The disputed amount is ₹72.41 crore, the same figure the filing gives as the expected financial implication.

It does not split that figure between tax, penalty and interest.

Where the case stands after the hearing

The matter came up for hearing on 26 Oct 2026. The High Court asked the department to file its counter within 4 weeks, asked IRCON to reply to the show cause notice within 2 weeks, and directed the GST authority not to pass an order until the next date of hearing.

The 2-week reply period and the bar on an order are the two steps the court set that bind the process in the near term, and the filing says they follow the 26 Oct 2026 hearing.

How it sits against the company's recent activity

The disputed ₹72.41 crore is about 0.8% of IRCON's market value of ₹9,177 crore at the 26 Oct 2026 close, and about 3.5% of its Q1 FY27 consolidated total income of ₹2,042.73 crore. Its consolidated net profit for that quarter was ₹92.03 crore, so the amount is about 79% of that quarter's profit.

What the GST matter means for IRCON's shareholders

The filing sets out a disputed amount of ₹72.41 crore and the court's directions, but does not say whether any provision has been made in the accounts, what the outcome of the writ petition or the show cause proceedings will be, or whether IRCON's reply has already been filed. It also does not give the date of the next hearing.

The next dated steps are the department's counter within 4 weeks and IRCON's reply to the show cause notice within 2 weeks, both set by the High Court.

Reference: Original filing (PDF)

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