Monday, 05 Oct 2026 Breaking: Mahayuti alliance faces internal tussle over Pune Teachers' MLC seat as BJP, Shiv Sena set to field candidates
BREAKING: Apple launches AI platform | Tesla earnings beat estimates | Nvidia stock surges | Bitcoin crosses major resistance
Business

Tata Steel gets Supreme Court relief in Rs 890 crore GST case

Tata Steel gets Supreme Court relief in Rs 890 crore GST case

New Delhi [India], August 26 (ANI): Tata Steel has secured relief from the Supreme Court in a Goods and Services Tax (GST) dispute after the apex court quashed a Rs 890.52 crore tax demand, an equal amount in penalty and applicable interest against the steelmaker.
In a stock exchange filing on Wednesday, Tata Steel said the Supreme Court allowed its appeal and set aside a June 2025 show-cause notice as well as a December 2025 order of the CGST and Central Excise authorities in Jamshedpur.
"Accordingly, the tax demand of Rs 890,52,10,202/-, penalty of Rs 890,52,10,202/- and the applicable interest thereon stands quashed," Tata Steel said.
Together, the tax demand and penalty amounted to about Rs 1,781 crore, excluding interest.
The dispute dates back to June 2025 and centred on input tax credit (ITC), which allows businesses to offset GST paid on purchases and inputs against the GST they owe on their sales.
The Office of the Commissioner of CGST and Central Excise, Jamshedpur, had issued a show-cause notice alleging that Tata Steel had irregularly availed ITC of Rs 890.52 crore during FY2018-19 to FY2020-21 and sought recovery of the amount along with interest and penalty.
Tata Steel contested the allegation, maintaining that it had not availed excess input tax credit. According to the company, the disputed credit related to one financial year but was availed in a subsequent financial year, which it said was permissible under GST laws. It also challenged the notice on jurisdiction and limitation grounds.
However, in December 2025, the tax authority confirmed the Rs 890.52 crore tax demand, imposed an equal penalty and sought applicable interest. Tata Steel subsequently moved the Jharkhand High Court in February 2026.
The High Court disposed of the petition in April, allowing the company to approach the appellate authority. Tata Steel instead challenged the High Court order before the Supreme Court. The apex court in May issued notice to the respondents and stayed further proceedings in the matter.
The Supreme Court heard Tata Steel's appeal on August 19 and pronounced its final judgment on August 25, according to the filing.
While setting aside the existing demand and penalty, the court gave the Tax Department liberty to initiate appropriate proceedings under Section 74 of the CGST Act if it considers it necessary, subject to the conditions laid down by the court. Any such order would have to be passed before February 28, 2027.
The ruling therefore quashes the existing tax demand and penalty against Tata Steel, while leaving a limited window for the Tax Department to initiate fresh proceedings in accordance with the Supreme Court's directions. (ANI)

Tags

Related News

Govt urges industry, States to join Bhavya Rasayan scheme to set up three chemical plants 
Business
Govt urges industry, States to join Bhavya Rasayan scheme to set up three chemical plants 

<p>New Delhi [India], October 5 (ANI): Union Minister of State for Chemicals and Fertilizers Anupriya Patel urged the do...

Navi Mumbai International Airport rolls out multimodal connectivity ahead of winter schedule
Business
Navi Mumbai International Airport rolls out multimodal connectivity ahead of winter schedule

<p>Navi Mumbai (Maharashtra) [India], October 5 (ANI): Navi Mumbai International Airport offers affordable multimodal tr...

India moving from services nation to product nation, new products to take centre stage at IMC 2026: Scindia
Business
India moving from services nation to product nation, new products to take centre stage at IMC 2026: Scindia

<p>New Delhi [India], October 5 (ANI): India is moving from being a services-led technology nation towards becoming a pr...

Sri Lanka invites Indian businesses to Export 2027 expo in Colombo, pitches stronger economic partnership
Business
Sri Lanka invites Indian businesses to Export 2027 expo in Colombo, pitches stronger economic partnership

<p>New Delhi [India], October 5 (ANI): Sri Lanka, on Monday, invited Indian buyers, investors and business leaders to pa...

Over 70% of Indian youth commute daily for education; Two-wheelers lead workforce travel: MoSPI
Business
Over 70% of Indian youth commute daily for education; Two-wheelers lead workforce travel: MoSPI

<p>New Delhi [India], October 5 (ANI): Students aged 15 - 29 years record the highest regular trip participation at 79.1...

Wireless data use jumps 25% in FY26, data revenue falls 11% per GB: TRAI
Business
Wireless data use jumps 25% in FY26, data revenue falls 11% per GB: TRAI

<p>New Delhi [India], October 5 (ANI): Wireless data usage in India rose sharply by 24.74 per cent during 2025-26, even...