Tata Steel Secures Stay Order from Supreme Court in Input Tax Credit Dispute

Tata Steel Secures Stay Order from Supreme Court in Input Tax Credit Dispute​

Tata Steel Limited has received a stay order from the Hon'ble Supreme Court of India regarding a prolonged tax dispute concerning the availing of Input Tax Credit (ITC) under the Central Goods and Services Tax Act, 2017 (CGST).

The legal dispute originated with a Demand cum Show Cause Notice issued by the Office of the Commissioner of CGST and Central Excise, Jamshedpur, on June 13, 2025. The notice related to irregular availing of ITC in contravention of the provisions of Sections 16 and 41 of the CGST Act, the Jharkhand Goods and Services Tax Act, 2017, and the Integrated Goods and Services Tax Act, 2017, for the period spanning FY2018-19 through FY2020-21.

The notice demanded and sought recovery of an ITC amount totaling ₹890,52,10,202/-.

Over the period, the Company made detailed submissions to the Adjudicating Authority. Subsequently, the Company received an Order dated December 26, 2025, confirming the demand. This order demanded the tax amount of ₹890,52,10,202/-, a penalty of ₹890,52,10,202/-, and applicable interest on the total tax amount.

The Company maintains that there is no such excess ITC. According to the Company, the difference was attributable to credit pertaining to one financial year but availed in a subsequent financial year, which is permissible under GST Laws. The Company had previously contended that the original Notice was issued without jurisdiction and was barred by limitation.

Facing the demand, the Company initiated legal proceedings, filing a Writ Petition before the Hon'ble High Court of Jharkhand on February 24, 2026. The High Court disposed of the Writ Petition on April 23, 2026, providing the Company with the liberty to approach the Appellate Authority.

The Company subsequently filed a Special Leave Petition (SLP) before the Hon'ble Supreme Court of India, challenging the order passed by the Hon'ble High Court of Jharkhand at Ranchi.

The matter was heard by the Supreme Court on May 19, 2026. Based on the proceedings, the Supreme Court issued Notice to the Respondents and granted a stay on all further proceedings related to this matter until the next date of hearing.

TATASTEEL Stock Price Movement​

Today, Tata Steel Limited shares edged higher, settling at ₹208.58, which marked a gain of 0.79% for the day. The stock saw robust activity in post-market trading, recording a volume of 24.39 million shares.