Tata Steel receives ₹1,000 Crore GST demand notice

Tata Steel informed the bourses and exchanges that it has received a Show Cause Notice (SCN) cum tax demand notice for ₹1,000 Crore. The order is related to irregular availment of Input Tax Credit.

The company announced in its exchange filing on June 29 that the Office of the Commissioner (Audit), Central Tax, Ranchi issued notice to disallow/demand owing  to alleged irregular availment of Input Tax Credit.

After the issue of Show Cause Notice (SCN), the company is supposed to show cause within a period of 30 days in front of the Additional/Joint Commissioner of Central GST & Central Excise, Jamshedpur, Jharkhand.

The company further elaborated that the alleged Goods and Service Tax (‘GST’) demand amounting to ₹1,000 Crore for FY 2018-19 to FY 2022-23 shall not be demanded and recovered from the Company. The company quoted the provisions of Section 74(1) of CGST/SGST for the reference.

Tata Steel in its defence contested that it has already paid GST of ₹500 Crore in its normal course of business. The company also said that the above GST amount shall be appropriated in the notice, and therefore, the alleged GST exposure is nearly ₹400 Crore.

Tata Steel also said that the stated Show Cause Notice has no merit and that Tata Steel will submit its response before the appropriate forum within the given timelines.

For feedback and suggestions, write to us at [email protected]