Tata Steel Limited has received a GST demand order amounting to ₹890.52 crore for the period from FY 2018–19 to FY 2020–21, relating to alleged irregular claims of Input Tax Credit (ITC). In addition to the tax demand, an equivalent penalty and applicable interest have also been imposed.
The order was issued on December 26, 2025, by the Joint Commissioner of Central Goods & Services Tax (CGST) and Central Excise, Jamshedpur.
This demand arises from a Show Cause Notice (SCN) issued by the office of the Commissioner of Central GST and Central Excise, Jamshedpur. The SCN alleged that Tata Steel had wrongly availed ITC in violation of Sections 16 and 41 of the Central Goods and Services Tax Act, 2017, along with relevant provisions of the Integrated Goods and Services Tax (IGST) Act, 2017.
The notice required Tata Steel to explain why ITC amounting to ₹890.52 crore, along with interest and penalties as per GST laws, should not be recovered. The company was asked to submit its explanation before the Additional/Joint Commissioner of CGST and Central Excise, Jamshedpur.
Tata Steel has stated that the explanations submitted during the adjudication proceedings were not properly considered. According to the company, the allegations are primarily based on differences identified by comparing the ITC claimed in monthly GST returns with the ITC reflected on the GST portal.
The company clarified that no excess ITC has actually been claimed. The reported difference arose because credits pertaining to one financial year were availed in the subsequent financial year, which is permissible under GST laws.
Tata Steel has maintained that the ITC claims are in full compliance with applicable GST regulations and is expected to pursue appropriate legal remedies against the demand order.
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