Tata Steel Faces Significant Tax Demand Over Alleged GST Irregularities

Tata Steel has been issued a show cause-cum-demand notice by tax authorities over alleged irregular input tax credit claims amounting to more than Rs 1,000 crore between fiscal years 2019 and 2023.

The steel giant is required to justify its stance before the Additional/Joint Commissioner of Central GST & Central Excise in Jamshedpur, Jharkhand, within 30 days, according to the notice received on Saturday. The company disclosed this development in a filing with the stock exchange.

Issued by the Office of the Commissioner (Audit), Central Tax, Ranchi, on June 27, the notice claims violations of Section 74(1) of the Central Goods and Services Tax Act, 2017, among others. While Tata Steel has already paid over Rs 514 crore in GST, the company asserts that the demand lacks merit and anticipates no operational or financial impact.

(With inputs from agencies.)