GST Demand Notice to Tata Steel: ₹890 Crore ITC Dispute Sparks Company Response
By Author | June 27, 2025
Category: GST Recent News – 2025, GST Demand News – 2025
🧾 Tata Steel Receives ₹890 Cr GST Notice
Tata Steel informed stock exchanges on Wednesday (June 25) that it had received a demand-cum-show cause notice (SCN) concerning irregular input tax credit (ITC) claims. The notice, issued by the Commissioner of CGST & Central Excise, Jamshedpur, pertains to the financial years 2018–19 through 2020–21.
The SCN alleges irregular availing of ITC worth ₹890.52 crore (₹890,52,10,202). It was dated June 13, 2025, and received by the company on June 24, 2025.
⚖️ Legal Grounds and Demands
According to Tata Steel’s regulatory filing on June 25, the SCN was issued for alleged contraventions under:
- Section 16 and 41 of the CGST Act, 2017, and
- Related provisions of the IGST Act, 2017
The notice asks the company to explain why the ITC amount, interest, and penalty should not be demanded and recovered. Tata Steel has 30 days to respond before the Additional/Joint Commissioner, CGST & Central Excise, Jamshedpur (Adjudicating Authority).
🗣️ Tata Steel Responds
Tata Steel responded through the same filing, stating:
“The Company believes that the SCN has no merits and will submit its response to the Adjudicating Authority within the given timeline.”
Additionally, the company clarified that the notice does not impact its financial, operational, or other business activities.
📈 Tata Steel Share Price Movement
Despite the GST notice, Tata Steel shares closed 1.03% higher on Wednesday.
The stock ended the trading session at ₹156.40 on BSE, reflecting positive investor sentiment.
