Tata Steel Gets GST Show-Cause Notice Over Alleged Rs 1,000 Crore Tax Credit Irregularity
Mumbai: Tata Steel on Sunday said it has received a show-cause-cum-demand notice from the tax department over an alleged irregular use of input tax credit worth over Rs 1,000 crore for the financial years 2018-19 to 2022-23. In a filing to the stock exchanges, the company said that the notice was issued by the Office of the Commissioner (Audit), Central Tax, Ranchi, on June 28.
"On June 28, Tata Steel Limited received a Show Cause cum demand Notice dated June 27, issued by the Office of the Commissioner (Audit), Central Tax, Ranchi, proposing to disallow/demand primarily on account of alleged irregular availment of Input Tax Credit in contravention of the provisions of Section 74(1) of the Central Goods and Services Tax Act, 2017/State Goods and Services Act, 2017 read with Section 20 of the Integrated Goods and Services Tax Act, 2017, for the period FY2018-19 through FY2022-23," the firm said in its filing.
The tax authority asked Tata Steel to explain, within 30 days, why the GST amounting to Rs 1,007.54 crore should not be demanded and recovered from the company. The explanation has to be submitted before the Additional or Joint Commissioner of Central GST & Central Excise in Jharkhand's Jamshedpur.
According to the notice, Tata Steel allegedly claimed input tax credit in violation of the GST rules -- specifically Section 74(1) of the Central Goods and Services Tax Act, 2017, and Section 20 of the Integrated Goods and Services Tax Act, 2017.
Tata Steel clarified that it has already paid Rs 514.19 crore as GST in the normal course of business. This amount is proposed to be adjusted in the notice, reducing the company's actual tax exposure to about Rs 493.35 crore.
The company has said it believes the notice is without merit and will present its case before the authorities within the given deadline. Tata Steel also stated that this matter does not affect its financial, operational, or other business activities. Under the GST system, businesses can claim input tax credit on the taxes paid for purchases used in the production of goods or services. This credit helps in reducing their overall tax liability.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
17 minutes ago
- Time of India
Higher policy transmission likely as share of floating rate loans rises: RBI
The Reserve Bank of India (RBI) anticipates more effective monetary policy transmission due to the increasing share of floating rate loans, which reached 75.7% in March 2025. Increased inter-bank liquidity, through measures like open market operations and CRR reductions, further supports faster transmission to financial and credit markets. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Kolkata: The monetary policy transmission for this round of rate cuts which started this February is likely to be more effective since the share of floating loans has been rising over the years, the Reserve Bank of India the central bank's decision to increase the availability of inter-bank liquidity is aimed at faster transmission of monetary policy to the financial and credit markets. The monetary policy maker already expressed hope that policy transmission would be better than previous share of floating rate loans in total gross advances of fourteen select mainstream banks, which account for around 80 per cent of the assets of scheduled commercial banks, has risen to 75.7% in March 2025 from 72% in March 2023, the central bank share of floating rate loans in the retail loan category rose to 65.1% from 60.2% during the same period. In the retail segment, 90% of the floating rate loans are linked to external benchmark linked rates in which transmission is almost central bank lowered the policy rate by a cumulative 100 basis points during the last three monetary policy meetings while market participants and economists are expecting more rate cuts this taking loans from public sector banks are likely to benefit more since 80.9% of the overall advances by these banks are floating loan rate as compared to private banks' 67.5%. Within the public sector domain, 93% of the agriculture sector loans are on floating rate basis while the ratio for private banks is just about 54.5%.The RBI injected durable liquidity amounting to about Rs 9.5 lakh crore through a series of liquidity measures including open market operation purchases, buy-sell swaps and term variable rate repos since January 2025, which led to system liquidity transitioning from deficit to surplus at end-March the decision to lower cash reserve ratio (CRR) by 100 bps in a phased manner will release Rs 2.5 lakh crore of primary liquidity starting September till December 2025."Cumulatively, these measures have not only turned durable liquidity into surplus but will also contribute to faster transmission of monetary policy to the financial and credit markets," the monetary policy authority said in the report.
United News of India
22 minutes ago
- United News of India
OVERWHELMING RESPONSE TO SEPC LIMITED RIGHTS ISSUE OF 35,00,00,000, PARTLY PAID-UP EQUITY SHARES AGGREGATING TO RS. 350.00 Crores
Press Releases » PNN SEPC Limited's ₹350 crore rights issue closes oversubscribed, signaling robust investor trust. Chennai (Tamil Nadu) [India], June 28: SEPC Limited today announced that it has achieved successful closure of Rights Issue of 74,35,19,173 (Seventy Four Crores Thirty-Five Lakhs Nineteen Thousands One Hundred & Seventy-Three ) Partly paid-up Equity Shares aggregating to ₹ 350 Cr. having issue price of ₹ 10/- per Equity Share (including a share premium of ₹ nil per share) (the 'issue price') on a rights basis to the eligible equity shareholders of our Company closed successfully on June 23, 2025. The Payment Schedule for the issue is as follows: Amount Payable per Rights Equity Share i.e. Issue Price Face value (₹) Premium (₹) Total On Application 5.00 Nil 5.00 On First and Call (as determined by our Board in consultation with Rights Issue Committee) 5.00 Nil 5.00 The Rights issue was oversubscribed by 2.12 times. SEPC Limited, is one of the leading EPC player in Water and Municipal Services, Roads, Industrial, and Mining sectors, announced today the successful closure of the issue of 74,35,19,173 (Seventy-Four Crores Thirty-Five Lakhs Nineteen Thousand One Hundred & Seventy-Three) partly paid−up Equity Shares (including a share premium of ₹ nil per share) (the 'issue price') on rights basis to the eligible equity shareholders (the 'Rights Issue') which was launched on June 09, 2025. The issue resulted into subscription of 74,35,19,173 shares resulting into oversubscription by 2.12 times. The issue period was from June 09, 2025, to June 23, 2025. The issue size was 35,00,00,000 (Thirty-Five Crores) partly paid-up Equity Shares aggregating to Rs. 350 Cr. having issue price of Rs. 10/- per Equity Share (including a share premium of ₹ nil per share) (the 'issue price') on a rights basis to its eligible equity shareholders in the ratio of 11 (Eleven) Rights Equity Share for every 50 (Fifty) fully paid-up Equity Shares held as on record date i.e. May 23, 2025. The payment schedule for this issue being partly paid up will be 50% i.e. ₹ 5/- (per share) payable with the Application and balance 50% will be payable on First and Final call. Funding for Payment of Non-Convertible Debentures including redemption and interest. Repayment/Pre-payment, in full or part, of certain borrowings availed by the Company. Funding for increasing the additional Margin of Non- Fund Based Limits. To augment the existing and incremental working capital requirement of our Company. General Corporate Purpose The allotment and listing formalities of the new shares on the BSE and NSE are expected to be completed on or about Friday, 27th June, 2025 and Tuesday, July 08, 2025 respectively. Commenting on the success of the Rights Issue, Shri Mr. Abdulla Mohammad Ibrahim Hassan Abdulla, Chairman and Non-Executive Director of SEPC Limited, said, 'I express my sincere thanks to our dear and esteemed shareholders for participating in this Rights Issue and making it a new and proud landmark in the history of India's capital market. Our shareholders have always been our biggest source of strength. Our decades-old relationship based on trust has consistently spurred us to achieve more. We are delighted and humbled by their extraordinary show of confidence in the future of SEPC. If you object to the content of this press release, please notify us at We will respond and rectify the situation within 24 hours.
India.com
28 minutes ago
- India.com
India's GST Collection Hits Record Rs 22.08 Lakh Crore In FY25, Rises 9.4%
New Delhi: India's Goods and Services Tax (GST) collection for the financial year 2024–25 touched a record high of Rs 22.08 lakh crore, marking a 9.4 per cent increase compared with the previous year, the government announced on Monday. The average monthly collection for the year stood at Rs 1.84 lakh crore. The government highlighted that GST revenues have more than doubled in just five years. In 2020–21, the total collection was Rs 11.37 lakh crore, with an average monthly figure of Rs 95,000 crore. This steady rise in revenue points to stronger tax compliance and consistent economic growth. The trend of rising GST collection has continued month after month. In May 2025 alone, the gross GST collection rose by 16.4 per cent to over Rs 2.01 lakh crore. This increase was driven by both domestic transactions and imports. Domestic revenues grew by 13.7 per cent to Rs 1.50 lakh crore, while import-related GST rose sharply by 25.2 per cent to Rs 51,266 crore. In terms of tax breakup for May, the central GST stood at Rs 35,434 crore and the state GST at Rs 43,902 crore. The Integrated GST (IGST), which is shared between the Centre and states, amounted to Rs 1.09 lakh crore. As of April 30, there are over 1.51 crore active GST registrations in India. These include more than 1.32 crore normal taxpayers, around 14.86 lakh composition taxpayers, and 3.71 lakh taxpayers registered under Tax Deducted at Source (TDS). India is also preparing to mark a major milestone on July 1 as the country celebrates eight years since the launch of the GST regime. Introduced in 2017, GST has become one of the most important tax reforms in India's history, replacing multiple indirect taxes with a unified structure.
