Disclosure under Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015
Awaiting price reaction for this filing.
Tata Steel has received a Show Cause cum Demand Notice from the DG GST Intelligence, Jamshedpur, alleging irregular availment of input tax credit of compensation cess on coal by its erstwhile subsidiary Tata Steel Long Products Limited (TSLP), which merged into Tata Steel in November 2023. The disputed period is April 2019 to February 2024. The notice demands recovery of around ₹161.5 crore in input tax credit, seeks appropriation of another ₹160.3 crore already reversed by the company in earlier returns, and proposes an equal penalty of ₹161.5 crore, putting the total potential exposure at roughly ₹323 crore. The company has been asked to respond within 30 days before the Adjudicating Authority in Jamshedpur.
The company has stated the notice has no merit and will contest it, and that there is no impact on its financial or operational activities. For shareholders, the near-term impact is limited since no demand has been confirmed yet, but a possible adverse order could lead to an outgo of over ₹320 crore plus interest, which may weigh on sentiment until resolved.