Tata Steel on Sunday (June 29) said that it has received a show cause-cum-demand notice from tax authorities regarding an alleged irregular availment of input tax credit (ITC) around Rs 1,000 crore for the financial years 2018-19 to 2022-23.

According to the company, the notice was issued by the Office of the Commissioner (Audit), Central Tax, Ranchi, on June 27, 2025. It directs Tata Steel to appear before the Additional/Joint Commissioner of Central GST and Central Excise, Jamshedpur, within 30 days and explain why the Goods and Services Tax (GST) amounting to Rs 1,007.54 crore should not be demanded and recovered from the company.

The notice alleges that the ITC was availed in violation of Section 74(1) of the Central Goods and Services Tax Act, 2017, and related provisions under the SGST and IGST Acts.

Tata Steel clarified that it has already paid Rs 514.19 crore as GST in the normal course of business. The notice proposes to appropriate this amount, leaving the remaining GST exposure at Rs 493.35 crore.

The company stated that it believes the notice is without merit and intends to present its case to the appropriate authority within the stipulated time.

Tata Steel also confirmed that there is no impact on its financial, operational, or other activities arising from this notice.