Tata Steel Receives ₹8.91 Billion GST Notice Over Input Tax Credit Claims

Tata Steel Ltd. said on Wednesday that it received a demand-cum-show-cause notice from the Office of the Commissioner of CGST and Central Excise, Jamshedpur, alleging irregularities in availing input tax credit worth ₹8.91 billion for the period 2018-19 to 2020-21.

The notice, issued Tuesday, claims violations under the Central Goods and Services Tax Act, 2017, and has asked the company to explain within 30 days why it should not be held liable to pay the tax, interest, and penalties.

Tata Steel said it believes the show-cause notice is without merit and confirmed that it will file an appropriate response. "There is no impact on the financial, operational, or other activities of the company arising from the said SCN," the company said in an exchange filing.

This comes on the heels of a similar demand of ₹1.6 billion against erstwhile Tata Steel Long Products Ltd., which merged with Tata Steel in 2023, raised by the Jamshedpur unit of the Directorate General of GST Intelligence.