Tata Steel has been directed by the GST authorities to pay a tax of ₹493.35 crore, a penalty of ₹638.83 crore, and interest on the tax amount. The company has stated it will contest the order, asserting its case is strong and there is no impact on its financial or operational activities.
Tata Steel Limited has disclosed that it received an order from the Commissioner of CGST & Central Excise, Jamshedpur, on December 18, 2025, directing the company to pay a GST tax amount of ₹493,35,47,131, a penalty of ₹638,82,62,185, and interest on the total tax amount. This order stems from a show cause cum demand notice issued earlier, which questioned the company's availment of Input Tax Credit (ITC) for the period FY2018-19 through FY2022-23.
The initial notice had proposed a total GST demand of ₹1,007.54 crore. However, Tata Steel clarified that it had already paid ₹514.19 crore in GST during the relevant period, which is proposed to be appropriated against the demand, reducing the net exposure to ₹493.35 crore. The company has submitted its defense before the adjudicating authority and believes the order does not fully consider its submissions.
Tata Steel reiterated that the matter does not affect its financial, operational, or other business activities. The company is confident in its position and will challenge the order within the statutory timelines.
Key Highlights
-
Tata Steel ordered to pay ₹493.35 crore in GST, ₹638.83 crore penalty, and interest
-
The original GST demand was ₹1,007.54 crore; ₹514.19 crore already paid, reducing exposure
-
Company contests the order, citing strong merits in its submissions
-
No impact on financial or operational activities of Tata Steel
-
Disclosure made as per SEBI listing and disclosure requirements
Source: Tata Steel Limited (Stock Exchange Filings), Office of the Commissioner (Audit), Central Tax, Ranchi