Bad news for Noel Tata, gets show cause notice in Rs 10000000000 over…, company says…
According to the notice received on Saturday, the steel major is required to show cause before the Additional/ Joint Commissioner of Central GST & Central Excise, Jamshedpur, Jharkhand within 30 days 'as to why the Goods and Service Tax (GST), amounting to Rs 1007,54,83,342 for the period FY2018-19 through FY2022-23 shall not be demanded and recovered from the company', Tata Steel said in a stock exchange filing.
The notice, issued by the Office of the Commissioner (Audit), Central Tax, Ranchi, on June 27, said the input tax credit was availed in contravention of the provisions of Section 74(1) of the Central Goods and Services Tax Act, 2017/State Goods and Services Act, 2017 (CGST/SGST) read with Section 20 Integrated Goods and Services Tax Act, 2017.
The company said it has already paid a GST of Rs 514,19,36,211 in the normal course of business.
'The above GST amount is proposed to be appropriated in the notice and therefore alleged GST exposure is Rs 493,35,47,131 only,' the filing said.
The company said it believes that the notice 'has no merits and the company shall make its submissions before the appropriate forum within the given timelines'.
'There is no impact on financial, operational, or other activities of the company, arising from the said SCN,' it added.
Under GST norms, enterprises are allowed credits in input tax on purchases meant for outputs, which they can claim in the form of deductions in their tax liabilities.
(With Inputs From PTI)
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