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On June 28, 2025, Tata Steel Limited received a Show Cause cum demand Notice dated June 27, 2025, from the Office of the Commissioner (Audit), Central Tax, Ranchi. The notice proposes a demand of ₹10,075,483,342 for Goods and Services Tax (GST) for the period FY2018-19 through FY2022-23, primarily due to alleged irregular availment of Input Tax Credit. After adjusting for ₹5,141,936,211 GST already paid, the alleged net GST exposure outlined in the notice is ₹4,933,547,131.
| Date | 30 Jun 2025 |
| Time | 07:00:02 |
| Category | Miscellaneous |
| ID | 8567O |
June 29, 2025
London Stock Exchange
London
Dear Madam, Sirs,
Sub: Disclosure under Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015
This has reference to the aforementioned subject.
On June 28, 2025, Tata Steel Limited received a Show Cause cum demand Notice dated June 27, 2025, issued by the Office of the Commissioner (Audit), Central Tax, Ranchi, proposing to disallow/demand primarily on account of alleged irregular availment of Input Tax Credit in contravention 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, for the period FY2018-19 through FY2022-23. Further details of the SCN are provided in the table below:
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Particulars |
Details |
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Brief details of litigation viz. name(s) of the opposing party, court/ tribunal/ agency where litigation is filed, brief details of dispute/litigation. |
On June 28, 2025, Tata Steel Limited ('Company') received a Show Cause cum demand Notice dated June 27, 2025 ('SCN'), issued by the Office of the Commissioner (Audit), Central Tax, Ranchi, proposing to disallow/demand primarily on account of alleged irregular availment of Input Tax Credit in contravention of the provisions of Section 74(1) of the Central Goods and Services Tax Act, 2017/State Goods and Services Act, 2017 ('CGST/SGST') read with Section 20 Integrated Goods and Services Tax Act, 2017 ('IGST') for the period FY2018-19 through FY2022-23.
As per the SCN, the Company is required to show cause before the Additional/Joint Commissioner of Central GST & Central Excise, Jamshedpur, Jharkhand (Adjudicating Authority') within 30 days of receipt of the SCN as to why:
1. the Goods and Service Tax ('GST') amounting to ₹1007,54,83,342/- for the period FY2018-19 through FY2022-23, shall not be demanded and recovered from the Company under the provisions of Section 74(1) of CGST/SGST, read with Section 20 of IGST;
2. interest at the appropriate rate on the above said amount mentioned should not be demanded under Section 50 of the CGST/SGST Act, 2017; and
3. penalty on the above said amount mentioned should not be imposed under Section 74 of the CGST/SGST Act, 2017.
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Expected financial implications, if any, due to compensation, penalty etc./quantum of claims, if any |
The Company has already paid GST of ₹514,19,36,211/- in the normal course of business. Above GST amount is proposed to be appropriated in Notice and therefore alleged GST exposure is ₹493,35,47,131/- only.
The Company believes that the SCN has no merits and the Company shall make its submissions before the Appropriate forum within the given timelines.
There is no impact on financial, operational, or other activities of the Company, arising from the said SCN.
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This disclosure is being made by the Company in compliance with Regulations 30 and 51 read with Para B of Part A of Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, read with related SEBI Circulars issued in this regard.
This is for your information and records.