Tata Steel Faces ₹890 Crore GST Demand Over Input Tax Credit

Tata Steel Limited has disclosed to the stock exchanges that it has received a Demand cum Show Cause Notice from the Office of the Commissioner of CGST & Central Excise, Jamshedpur. The notice, dated June 13, 2025, was received by the company on June 24, 2025, and pertains to alleged irregular availing of Input Tax Credit (ITC) during the financial years 2018–19 to 2020–21.

Details of The Show Cause Notice Issued by the Tax Authority

The Demand cum Show Cause Notice was issued in connection with irregular availing of Input Tax Credit in contravention to the provisions of Sections 16 and 41 of the Central Goods and Services Tax Act, 2017, read with applicable provisions of the Integrated Goods and Services Tax Act, 2017. 

As per the Show Cause Notice, Tata Steel is required to show cause before the Additional/Joint Commissioner, CGST & Central Excise, Jamshedpur, Jharkhand, within 30 days of receipt of the notice. The authority seeks to understand why the Input Tax Credit amounting to ₹890,52,10,202 availed during the said period should not be demanded and recovered under the provisions of Section 74(1) of the CGST/SGST Act, 2017, read with Section 20 of the IGST Act. 

Tata Steel Approves $180 Million Capital Infusion into Foreign Subsidiary TSHP

This is in continuation of the Company’s disclosure dated May 12, 2025, wherein it was informed that the Board of Directors of Tata Steel Limited has approved the infusion of funds amounting to $180 million into T Steel Holdings Pte. Ltd. (‘TSHP’), a wholly owned foreign subsidiary. The capital infusion will be carried out by way of subscription to equity shares of TSHP, in one or more tranches, during the financial year 2025–26.

Read More: Maharashtra to Cut Electricity Tariffs by 26% Over 5 Years!

Tata Steel Share Price Performance

As of 26 June 2025, 9:14 AM, Tata Steel shares are trading at ₹156.87 per share, a 0.31% increase.

Conclusion

Tata Steel maintains that the claims made in the notice are unfounded and has committed to addressing them through the appropriate legal channels. Despite the large value involved, the company has confirmed that there will be no disruption to its financial or operational standing.

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