IRCTC faces regulatory fines, secures favorable tax ruling

Indian Railway Catering & Tourism Corporation (IRCTC) announced on October 10, 2025, that its board addressed fines levied by BSE and NSE for non-compliance with SEBI (LODR) Regulations, 2015, for the quarter ended June 30, 2025. The non-compliance, including issues with board composition, audit committee, and nomination & remuneration committee, was deemed by the board to be "beyond control." IRCTC noted proactive steps taken to inform and request the administrative Ministry of Railways for the appointment of independent directors, including a woman independent director.

In a separate development on the same date, IRCTC disclosed a favorable ruling from the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi. CESTAT allowed appeals against earlier service tax demands, stating that the "transaction is purely on business terms on revenue sharing basis" and the demand for service tax was not sustainable.

This decision dismissed earlier demands totaling ₹3.90 Cr., ₹2.84 Cr., and 4.45 Lac, amounting to a total of ₹6.78 Cr. for all three cases. These appeals, filed against orders from the commissioner, Service Tax, were originally lodged between 2015 and 2018.