Steel major Tata Steel Ltd on Friday (December 19) said it has received an order from the office of the Commissioner of CGST & Central Excise, Jamshedpur, Jharkhand, directing the company to pay a total liability of ₹1,132.18 crore. This includes ₹493.35 crore in GST, ₹638.83 crore as penalty, and applicable interest on the total amount.
The matter relates to a show cause cum demand notice issued earlier by the office of the Commissioner (Audit), Central Tax, Ranchi, concerning alleged irregular availment of input tax credit. The show cause cum demand notice is for the period FY2018-19 through FY2022-23.
The notice required Tata Steel to explain why the GST amount of ₹1,007.55 crore should not be demanded, why interest at the appropriate rate should not be applied, and why a penalty should not be imposed under the relevant GST provisions. The company had already paid ₹514.19 crore in GST during normal business operations, leaving the alleged exposure at ₹493.35 crore.
Tata Steel made its submissions to the adjudicating authority within the given timelines, but the commissioner directed the company to pay the tax, penalty, and applicable interest on December 18, 2025.
The company stated that proper consideration was not given to its submissions during adjudication and expressed confidence in contesting the order before the appropriate forum within statutory timelines. Tata Steel also confirmed that the order has no impact on its financial, operational, or other business activities.
