New Delhi: Tata Steel Ltd has received major relief after tax authorities dropped a ₹1,615 crore GST demand linked to its erstwhile subsidiary Tata Steel Long Products Ltd (TSLP), according to a regulatory filing made on Sunday.
The Joint Commissioner of CGST & Central Excise, Jamshedpur, passed a favourable order on December 17, setting aside the entire demand raised by the Directorate General of GST Intelligence (DGGI) in June this year. The show-cause notice had alleged irregular availment of compensation cess input tax credit by TSLP for the period between April 2019 and February 2024.
TSLP was merged into Tata Steel with effect from November 15, 2023, under a court-approved scheme of amalgamation, making Tata Steel liable for any outstanding tax exposure.
In its order, the adjudicating authority acknowledged that Tata Steel had already paid and reversed GST amounting to ₹1,602.8 crore through its GST returns filed in December 2022 and August 2023. The remaining balance demand of ₹12.3 crore was dropped entirely.
As a result, the aggregate tax demand of ₹1,615.15 crore has been set aside, and no penalty has been imposed on the company.
Tata Steel said it is evaluating the implications of the order and has made the disclosure in compliance with SEBI’s listing regulations.