ITC Disallowance: Tata Steel Disputes Rs 493.35 Crore GST Liability Before Jharkhand High Court
Tata Steel Limited has recently disclosed that it had previously received a show cause demand notice (SCN) dated June 27, 2025, issued by the Office of the Commissioner (Audit), Central Tax, Ranchi, proposing to disallow Input Tax Credit (ITC) for violation of the provisions of Section 74(1) of the Central Goods and Services Tax Act, 2017/State Goods and Services Act, 2017, read with Section 20 of the Integrated Goods and Services Tax Act, 2017. The case pertains to the period between Financial Year 2018-19 and Financial Year 2022-23.
Through this notice, the company was asked to explain to the concerned authorities why the proposed action of demanding Rs 1007.54 Crore, along with the interest/penalty, should not be taken against it. Of the total amount demanded, the company had already paid Rs 524.19 Crore. Hence, the dispute was regarding the payment of Rs 493.35 Crore. The company had made the detailed disclosure before the concerned authorities within the time limit as prescribed in the SCN.
Thereafter, on December 19, 2025, the company disclosed the receipt of an Adjudication Order dated December 18, 2025, passed by the Commissioner of CGST & Central Excise, Jamshedpur, Jharkhand, asking the company to pay tax amounting to Rs 493.35 Crore, along with a penalty of Rs 638.82 Crore and suitable interest on the amount.
Presently, the company has reviewed the order issued by the Commissioner of CGST & Central Excise, Jamshedpur, Jharkhand, and now it believes that the points and explanations submitted by the company were not properly considered while deciding the matter. The company also believes that it has strong grounds in its favour. Therefore, on March 11, 2026, it filed a writ petition before the Hon’ble High Court of Jharkhand, challenging the order dated December 18, 2025, issued by the Commissioner of CGST & Central Excise, Jamshedpur, and has prayed for the court to quash the same.
The company has disclosed the aforementioned details through a regulatory filing dated March 12, 2026, addressed to the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), issued under Regulations 30 and 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.