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Tata Steel has won a major reprieve in a long-running GST dispute after the Supreme Court quashed a tax demand of ₹890.52 crore, an equivalent penalty and applicable interest against the steelmaker.
Tata Steel Limited said tax authorities have filed an appeal seeking restoration of penalties worth Rs. 368.72 crore that were earlier dropped in a GST adjudication order
ata Steel received a show-cause notice along with a tax demand from the Officer of Commissioner (Audit) of Central Tax, Ranchi, on 27 June 2025, alleging an input tax credit (ITC) irregularity in the period between financial year 2018-18 to 2022-23 fiscal, according to an exchange filing.
Tata Steel has received a demand cum show cause notice from CGST & Central Excise of Jamshedpur, Jharkhand. The notice pertains to the irregular availing of Rs 890.52 crore of Input Tax Credit for the period FY19 through FY21.
The Bombay High Court has held that Tata Steel is entitled to treat the contribution of Rs. 212.52 crores to the Compensatory Afforestation Fund (CAF) as revenue expenditure.