Tata Steel has received a GST notice of over Rs. 1000 crore for allegedly claiming irregular Input Tax Credit between 2018–19 and 2022–23. The company denied wrongdoing, termed the notice baseless, and plans to respond within 30 days.
Tata Steel has received a show-cause cum demand notice of over Rs. 1000 crore from the Goods and Services Tax (GST) department over alleged irregularities in claiming Input Tax Credit (ITC) between the financial years 2018–19 and 2022–23. The notice was issued by the Central Tax Audit Office based in Ranchi and was received by the company on 29th June. As per the details, Tata Steel has been asked to explain within 30 days why a total of Rs. 1,007.54 crore in GST should not be recovered from it.
According to the notice, the company allegedly claimed ITC by violating certain provisions of the Central GST Act, 2017, specifically under Section 74(1) as well as relevant sections of the Integrated GST Act.
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Tata Steel Responded and Called “A Baseless Notice”
In an official communication to the stock exchanges on Sunday, Tata Steel acknowledged receiving the notice and clarified its stand. The company said it had already paid Rs. 514.19 crore of GST during the relevant period as part of its normal business operations. The notice proposes adjusting this already-paid amount, which brings down the actual disputed GST risk to approximately Rs. 493.35 crore. Tata Steel maintained that the allegations are without merit and that the company will present its reply through proper legal channels within the given time. In a official statement, the company stated that “We believe the claims made in the notice are not valid, and we will respond appropriately within the stipulated deadline.” Tata Steel also confirmed that this tax notice will not impact its business operations, financial position, or ongoing projects.
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