Tata Steel has secured interim relief from the Supreme Court in a long‑running GST dispute after the apex court on May 19, 2026 issued notice and stayed further proceedings arising from a Jamshedpur CGST order that had confirmed a tax demand of INR 890.52 crore and an equal penalty, the company disclosed in an exchange filing on May 21, 2026.
Tata Steel received a demand‑cum‑show‑cause notice dated June 13, 2025 from the Office of the Commissioner of CGST and Central Excise, Jamshedpur, alleging irregular availing of Input Tax Credit (ITC) for FY2018‑19 through FY2020‑21 and proposing recovery of INR 890,52,10,202 alongside interest and penalty.
The company filed detailed submissions with the adjudicating authority, but the authority’s order dated December 26, 2025 confirmed the tax demand and imposed an equal penalty, along with interest, without taking cognisance of Tata Steel’s submissions, the disclosure states.
Tata Steel says there was no excess ITC and that the alleged mismatch arose partly because credit attributable to one financial year was availed in a subsequent year, a practice the company says is permissible under GST laws, and that the notice was issued without jurisdiction and was time‑barred.
“As per the Company, there was no such excess ITC and difference was, inter alia, on account of credit pertaining to one financial year but availed in subsequent financial year which is permissible as per GST Laws. Further, as per the Company, the Notice was issued without jurisdiction and also barred by Limitation,” Tata Steel noted.
Tata Steel filed a writ petition in the Jharkhand High Court on February 24, 2026; that petition was disposed of on April 23, 2026 with liberty to approach the appellate authority, prompting the company to move the Supreme Court by way of a Special Leave Petition (SLP).
The Supreme Court heard the matter on May 19 and, per the copy of the order received by the company on May 20, issued notice to the respondents and stayed all further proceedings until the next date of hearing.
“Based on the copy of the Order dated May 19, 2026 issued by the Hon’ble Supreme Court on May 20, 2026, the Company hereby informs that the Hon’ble Supreme Court has issued Notice to the Respondents. Further, the Hon’ble Supreme Court has also granted stay on all further proceedings relating to this matter, until the next date of hearing,” said Tata Steel.
