Tata Steel Share Price in Focus; Receives ₹890.52 Crore GST Demand Order

Tata Steel has received a significant GST-related order from tax authorities in Jharkhand, involving alleged irregular input tax credit (ITC) claims for earlier financial years.  

The company has stated that it disagrees with the findings and intends to pursue legal remedies within the prescribed timelines. 

Key Development 

The company disclosed that it received an order dated December 26, 2025, from the Joint Commissioner of CGST & Central Excise, Jamshedpur, directing it to pay ₹890.52 crore (₹890,52,10,202) as tax, an equivalent amount ₹890,52,10,202 as penalty, along with applicable interest.  

The demand relates to the period from FY2018-19 to FY2020-21 and follows a show-cause notice issued earlier in June 2025.  

Company’s Position and Explanation 

Tata Steel said the order does not adequately consider the submissions it made during the adjudication process. According to the company, the alleged excess ITC arose due to timing differences, where eligible credit pertaining to 1 financial year was availed in a subsequent year, a practice permitted under GST law. The company maintains that there was no wrongful availing of ITC. 

Next Steps and Impact Assessment 

The steelmaker stated that it has strong grounds to challenge the order and will contest it before the appropriate forum within statutory deadlines.  

Tata Steel also clarified that, based on its assessment, the order does not have any impact on its financial position, operations or other business activities at this stage. 

Read More: Tata Steel Acquires Remaining 50% Stake in Tata BlueScope Steel for ₹1,100 Crore! 

Tata Steel Share Price Performance  

As of December 29, 2025, at 9:30 AM, Tata Steel share price is trading at ₹171.50 per share, reflecting a surge of 1.41% from the previous closing price.  

Conclusion 

While the tax demand is substantial in absolute terms, Tata Steel’s decision to contest the order underscores its confidence in the merits of its case. The outcome of the legal proceedings will be closely watched, though the company has reiterated that it does not foresee any immediate operational or financial disruption arising from the order. 

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