Tata Steel receives notice over input tax credit, says claim lacks merit: ‘Already paid GST of ₹514,19,36,211'
Tata Steel received a show-cause notice along with a tax demand from the Officer of Commissioner (Audit) of Central Tax, Ranchi, on 27 June 2025, alleging an input tax credit (ITC) irregularity in the period between financial year 2018-18 to 2022-23 fiscal, according to an exchange filing.
The BSE filing on Sunday, 29 June 2025, showed that the Officer of Commissioner (Audit) of Central Tax, Ranchi, imposed a tax demand of over ₹ 1,007.54 crore ( ₹ 1007,54,83,342) for the period between the financial year 2019-19 to the 2022-23 fiscal years.
However, the steelmaker also said that the company has already paid a GST of ₹ 514.19 crore in the normal course of its business operations, and out of the above-mentioned amount, the proposed GST payment will be ₹ 493.35 crore due to the alleged exposure in the input tax credit (ITC) irregularity.
Tata Steel said that there is 'no merit' for this show cause notice, and the company plans to make its submissions before the appropriate forum within the given timeline.
The BSE filing data shows that the company is required to prove the cause of the allegation in front of the Additional or Joint Commissioner of Central GST and Central Excise of Jamshedpur, Jharkhand, within 30 days of receiving the notice.
'There is no impact on financial, operational, or other activities of the Company, arising from the said SCN,' said Tata Steel in the BSE filing.
Tata Steel shares closed 0.56% higher at ₹ 161.40 after Friday's stock market session, compared to ₹ 160.50 in the previous market close. The company disclosed the show cause notice and tax demand update on Sunday, 29 June 2025.
The shares of the Tata Group steelmaker have given stock market investors more than a 388% return on their investment in the last five years. However, the shares have lost 7.34% in the last one-year period.
On a year-to-date (YTD) basis, the shares are trading 17.95% higher in 2025 and 6.81% higher in the last five stock market sessions.
Tata Steel shares hit their 52-week high level at ₹ 178.15 on 4 July 2025, while the 52-week low level was at ₹ 122.60 on 13 January 2025, according to the BSE data. The company's market capitalisation (M-Cap) was more than ₹ 2.01 lakh crore as of the stock market close on Friday, 27 June 2025.
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