Tata Steel Terms ₹1,007 Crore GST Demand Notice ‘Baseless’, Says No Impact on Business Operations
Tata Steel Terms ₹1,007 Crore GST Demand Notice 'Baseless', Says No Impact on Business Operations
Company receives show-cause notice over input tax credit for FY 2018–2023; to respond within 30 days
Tata Steel has received a show-cause notice from the Office of the Commissioner (Audit) of Central Tax, Ranchi, regarding alleged irregularities in Input Tax Credit (ITC) claims between FY 2018–19 and FY 2022–23. The notice, issued on June 27, 2025, includes a tax demand of ₹1,007.54 crore, as per a BSE filing made on June 29.
In its response, Tata Steel said it has already deposited ₹514.19 crore as GST in the ordinary course of business. Of the total amount mentioned in the notice, the proposed GST demand stands at ₹493.35 crore due to the alleged discrepancy in ITC claims.
The company asserted that it sees “no merit” in the notice and plans to submit a detailed explanation before the Additional or Joint Commissioner of Central GST and Central Excise, Jamshedpur, within 30 days of receiving the notice.
Tata Steel emphasised that this issue is part of the regular course of business and will have no impact on its operations, financials, or ongoing activities. The company reiterated that it will take the matter up at the appropriate legal forum.
Input tax credit is a standard mechanism under the GST framework, allowing businesses to offset tax paid on inputs against their output tax liability. Tata Steel maintains that its claims are compliant and the allegations are unfounded.
