Tata Steel faces $890 million tax notice over input credit claims

Published 25/06/2025, 14:42
Tata Steel faces $890 million tax notice over input credit claims

NEW DELHI - Tata Steel (NSE:TISC) Limited received a demand cum show cause notice from Indian tax authorities regarding alleged irregular availing of Input Tax Credit worth ₹890.52 crore (approximately $890 million), according to a company statement released Tuesday.

The notice, issued by the Office of the Commissioner of CGST & Central Excise in Jamshedpur, claims the steel manufacturer improperly claimed tax credits between fiscal years 2018-19 and 2020-21, potentially violating sections of India’s goods and services tax laws.

Tax officials have asked Tata Steel to explain why the input tax credits should not be recovered, along with applicable interest and penalties. The company has 30 days to respond to the allegations before the Additional/Joint Commissioner.

In its regulatory filing to the London Stock Exchange (LON:LSEG) on Wednesday, Tata Steel stated it believes "the SCN has no merits" and plans to make submissions to the adjudicating authority within the given timeframe.

The company also asserted there would be "no impact on financial, operational, or other activities" arising from the show cause notice.

The disclosure was made in compliance with India’s Securities and Exchange Board regulations requiring listed companies to report material developments that could affect investors.

Tata Steel, part of the Tata Group conglomerate, is one of India’s largest steel producers with operations across multiple countries.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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