High Court Grants Temporary Stay on Rs. 1131 Cr GST Demand on Tata Steel
High Court Grants Temporary Stay on Rs. 1131 Cr GST Demand on Tata Steel
Tata Steel Limited has given an update regarding ongoing tax proceedings. The company, on Wednesday, informed the stock exchanges that it has received temporary relief from the Jharkhand High Court. The court has put a stay on further proceedings, giving the company time until the next hearing on April 15, 2026.
Background of the Case
The issue is related to the financial year 2018-19 through FY 2022-23. Tata Steel received a show cause notice from GST authorities, disallowing Input Tax Credit (ITC) for the said period under the Central Goods and Services Tax Act, 2017 and Integrated Goods and Services Tax Act, 2017.
The total GST demand in the SCN was Rs 1007,54,83,342 along with interest and penalty. However, the company had already paid Rs 514,19,36,211 in the normal course of business. This reduced the demand to Rs 493,35,47,131.
In December 2025, tax authorities passed an order directing Tata Steel to pay the remaining tax along with a penalty of Rs 638,82,62,185 and applicable interest on the total amount of tax.
Key Details of Order
| Particular | Details |
| Tax Authority | Commissioner of CGST & Central Excise, Jamshedpur, Jharkhand |
| Court | Jharkhand High Court |
| Relevant Period | FY2018-19 to FY2022-23 |
| Disputed Tax | Rs 493 crore |
| Penalty | Rs 638 crore |
| Next Hearing | April 15, 2026 |
Latest Update on the Matter
The company had challenged the order passed by the Commissioner of CGST & Central Excise before the High Court.
As per TATA Steel, the matter was heard by the Jharkhand High Court on March 24, 2026, where the court granted a stay on all further proceedings relating to the GST dispute until the next date of hearing. The matter is listed to be heard on April 15, 2026.
Company’s Disclosure Requirement
The above disclosure was made by Tata Steel Ltd to both the stock exchanges under Regulations 30 and 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.