Mumbai: Tata Steel Ltd on Sunday said it has received an adjudication order from the GST authorities directing it to pay ₹890.52 crore in tax, an equivalent amount as penalty, along with applicable interest, in connection with alleged irregular availment of input tax credit (ITC) for the period from FY2018-19 to FY2020-21.
The order, dated December 26, 2025, was passed by the Joint Commissioner of CGST & Central Excise, Jamshedpur, following a demand-cum-show cause notice issued earlier. The tax department had alleged that Tata Steel availed excess ITC in contravention of provisions under the CGST and IGST Acts, and proposed recovery under Section 74 of the GST law, along with interest and penalty.
Tata Steel said it had made detailed submissions before the adjudicating authority within the stipulated timelines, but believes that due consideration was not given to its explanations. According to the company, the alleged excess ITC arises primarily from timing differences, where credits pertaining to one financial year were availed in a subsequent year, a practice it says is permissible under GST regulations.
“The company has strong grounds on merit to challenge the demand,” Tata Steel said in a regulatory filing, adding that it will contest the order before the appropriate appellate forum within the statutory timelines. The steelmaker further stated that, given the merits of the case, it does not expect any impact on its financial position, operations or other activities arising from the order.
The disclosure has been made under SEBI’s listing regulations. Tax disputes and litigation remain a key risk factor for large corporates under India’s evolving GST framework, with several companies contesting demands linked to ITC reconciliation and reporting diff erences.