Tata Steel Limited had earlier informed that it had received a Demand-cum-Show Cause Notice from the Office of the Commissioner of CGST & Central Excise, Jamshedpur, in connection with the alleged irregular availment of Input Tax Credit in contravention of the provisions of Sections 16 and 41 of the Central Goods and Services Tax Act, 2017, read with the applicable provisions of the Integrated Goods and Services Tax Act, 2017, for the period from FY2018-19 through FY2020-21. The SCN required the Company to show cause before the Additional/Joint Commissioner of CGST & Central Excise, Jamshedpur, Jharkhand as to why the Input Tax Credit amounting to INR 890,52,10,202/-, which was allegedly irregularly availed by the Company during the said period, should not be demanded and recovered under Section 74(1) of the CGST/State Goods and Services Tax Act, 2017, as amended, read with Section 20 of the IGST Act, along with interest at the appropriate rate under Section 50 of the CGST/SGST Act, 2017, and why a penalty should not be imposed under Section 74 of the CGST/SGST Act, 2017. The Company made the necessary submissions on merits before the Adjudicating Authority within the timelines specified in the SCN.
The Company on December 27, 2025, received an Order dated December 26, 2025, passed by the Joint Commissioner of CGST & Central Excise, Jamshedpur, Jharkhand, directing the Company to pay a tax amount of INR 890,52,10,202, penalty of INR 890,52,10,202 and applicable interest on the total amount of tax. The Company believes that proper cognizance was not taken of the submissions made by the Company while adjudicating the matter. The main issue relates to excess Input Tax Credit (ITC) identified by comparing, the ITC claimed in monthly returns as against the ITC reflected in GST Portal.
As per the Company, there is no such excess ITC and difference is on account of credit pertaining to one financial year but availed in subsequent financial year which is permissible as per GST Laws. The Company believes that it has strong grounds on merit to challenge the demand and hence will contest the same before the Appropriate forum within the statutory timelines. Given the merits of the case and strong grounds available for the Company to contest, the Company believes that there is no impact on financial, operational, or other activities of the Company, arising from the said order.
Tata Steel Limited is an India-based global steel company with an annual crude steel capacity of approximately 35 million tons per annum. The Company is primarily engaged in the business of manufacturing and distribution of steel products across the globe. The Company and its subsidiaries have a presence across the value chain of steel manufacturing, from mining and processing iron ore and coal to producing and distributing finished products. Its products include cold rolled (Non-branded), BP sheets, Galvano, HR commercial, hot rolled pickled and oiled and hot rolled skin passed pickled and oiled, high tensile steel strapping, pre-engineered buildings, projects/ tenders, construction and projects, and full hard cold rolled. The Company's brands include MagiZinc, Ymagine, Ympress, Contiflo, Strongbox, SAB Profil, Fischer Profil, Montana, Advantica, Fischertherm, Fischerfireproof, Montanatherm, Montapanel, Swiss Panel, Holorib, Serica, MagiZinc Auto, HyperForm, HILUMIN and Colorcoat.
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Investor
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ESG MSCI
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