Tata Steel Gets ₹1,000 Crore Tax Demand
In an exchange filing published on June 29, the company said, Office of the Commissioner (Audit), Central Tax, Ranchi, proposing to disallow/demand primarily on account of alleged irregular availment of Input Tax Credit in contravention of the provisions of Section 74(1) of the Central Goods and Services Tax Act, 2017/State Goods and Services Act, 2017 read with Section 20 of the Integrated Goods and Services Tax Act, 2017, for the period FY2018-19 through FY2022-23.
Following this Show Cause Notice (SCN), the company is expected to show cause before the Additional/Joint Commissioner of Central GST & Central Excise, Jamshedpur, Jharkhand within 30 days of receipt of the SCN.SCN Has No Merit, Says Tata Steel
The exchange filing further added that the Goods and Service Tax (‘GST’) amounting to ₹1007,54,83,342/- or ₹1,000 crore for the period FY2018-19 through FY2022-23 shall not be demanded and recovered from the Company under the provisions of Section 74(1) of CGST/SGST, read with Section 20 of
Tata Steel, in its defence, said that it has already paid GST of ₹514,19,36,211 or ₹500 crore in the normal course of business. The above GST amount is proposed to be appropriated in the notice, and therefore, the alleged GST exposure is ₹493,35,47,131/- or ₹400 crore.
Furthermore, the company added that the Show Cause Notice has no merit and that Tata Steel will make its submissions before the appropriate forum within the given timelines. The company also added that there is no impact on the financial, operational, or other activities of the company arising from the said SCN.
The company shares could be in focus on Monday. On the last day of the previous week’s trade, the company shares closed in green with minor gains of ₹0.75 or 0.47%. In the past 6 months of trade, the company shares have risen in value by 17.83% or ₹24.41. The current stock price stands at ₹161.29 on the NSE.
Also Read: Tata Steel acquires 1.79 crore shares of T Steel Holdings for₹1,563 crore
