Tata Steel Faces Tax Demand Notice for Alleged GST Irregularity

Tata Steel received a show-cause notice and tax demand from the Officer of Commissioner (Audit) of Central Tax, Ranchi, on 27 June 2025. The notice alleged an input tax credit (ITC) irregularity between the financial years 2018-19 to 2022-23. The BSE filing on 29 June 2025 revealed a tax demand of over ₹1,007.54 crore for the period from 2019-20 to 2022-23.

However, Tata Steel mentioned that it had already paid a GST of ₹514.19 crore in its regular business operations. Out of the demanded amount, ₹493.35 crore is proposed for GST payment due to the alleged ITC irregularity. Tata Steel stated that the show cause notice has no merit and plans to present its case within the given timeline.

The company needs to address the allegation before the Additional or Joint Commissioner of Central GST and Central Excise of Jamshedpur, Jharkhand, within 30 days of receiving the notice. Tata Steel clarified that the notice has no impact on its financial, operational, or other activities.

Tata Steel shares closed at ₹161.40 after the stock market session on 29 June 2025, up by 0.56% from the previous close. The company reported the show cause notice and tax demand update on the same day. Over the last five years, Tata Steel shares have provided investors with a return of over 388%. However, in the past year, the shares have declined by 7.34%.

Year-to-date, the shares have risen by 17.95% in 2025 and by 6.81% in the last five stock market sessions. The 52-week high for Tata Steel shares was ₹178.15 on 4 July 2025, while the low was ₹122.60 on 13 January 2025. The company's market capitalisation stood at over ₹2.01 lakh crore as of the stock market close on 27 June 2025.