UDIT VANI JAMSHEDPUR/RANCHI: Steel major Tata Steel Limited has moved the Jharkhand High Court to contest a massive Goods and Services Tax (GST) demand and penalty totaling over ₹1,132 crore. The company filed a writ petition on March 11, 2026, seeking to quash the order issued by the Commissioner of CGST and Central Excise, Jamshedpur.
The Core of the Dispute The matter pertains to the alleged irregular availment of Input Tax Credit (ITC) for the period between FY 2018-19 and FY 2022-23. On December 18, 2025, the CGST Commissionerate passed an adjudication order imposing a heavy financial burden on the steel giant.
The Financial Breakdown:
- Disputed Tax Demand: ₹493.35 Crore
- Penalty Imposed: ₹638.83 Crore
- Total Exposure: ₹1,132.18 Crore (excluding applicable interest)
Tata Steel’s Defense In its legal challenge and regulatory filing, Tata Steel maintained that the demand is flawed. The company stated that it has already paid approximately ₹514.19 Crore in GST during its normal course of business, a fact it claims the authorities failed to properly appropriate in the show-cause notice.
The company further argued that the authorities did not adequately consider the detailed explanations and evidence provided during the adjudication process. “We believe we have a strong case on merits and are taking all necessary legal steps to protect the company’s interests,” a spokesperson indicated.
Impact on Operations Tata Steel has assured investors that this litigation will not have any immediate adverse impact on its day-to-day operations or financial stability. The legal fraternity is closely watching the case as it heads for its first hearing in the High Court.
