Tata Steel receives notice over input tax credit, says claim lacks merit: ‘Already paid GST of ₹514,19,36,211'
Tata Steel received a show-cause notice along with a tax demand from the Officer of Commissioner (Audit) of Central Tax, Ranchi, on 27 June 2025, alleging an input tax credit (ITC) irregularity in the period between financial year 2018-18 to 2022-23 fiscal, according to an exchange filing.
The BSE filing on Sunday, 29 June 2025, showed that the Officer of Commissioner (Audit) of Central Tax, Ranchi, imposed a tax demand of over ₹ 1,007.54 crore ( ₹ 1007,54,83,342) for the period between the financial year 2019-19 to the 2022-23 fiscal years.
However, the steelmaker also said that the company has already paid a GST of ₹ 514.19 crore in the normal course of its business operations, and out of the above-mentioned amount, the proposed GST payment will be ₹ 493.35 crore due to the alleged exposure in the input tax credit (ITC) irregularity.
Tata Steel said that there is 'no merit' for this show cause notice, and the company plans to make its submissions before the appropriate forum within the given timeline.
The BSE filing data shows that the company is required to prove the cause of the allegation in front of the Additional or Joint Commissioner of Central GST and Central Excise of Jamshedpur, Jharkhand, within 30 days of receiving the notice.
'There is no impact on financial, operational, or other activities of the Company, arising from the said SCN,' said Tata Steel in the BSE filing.
Tata Steel shares closed 0.56% higher at ₹ 161.40 after Friday's stock market session, compared to ₹ 160.50 in the previous market close. The company disclosed the show cause notice and tax demand update on Sunday, 29 June 2025.
The shares of the Tata Group steelmaker have given stock market investors more than a 388% return on their investment in the last five years. However, the shares have lost 7.34% in the last one-year period.
On a year-to-date (YTD) basis, the shares are trading 17.95% higher in 2025 and 6.81% higher in the last five stock market sessions.
Tata Steel shares hit their 52-week high level at ₹ 178.15 on 4 July 2025, while the 52-week low level was at ₹ 122.60 on 13 January 2025, according to the BSE data. The company's market capitalisation (M-Cap) was more than ₹ 2.01 lakh crore as of the stock market close on Friday, 27 June 2025.
Read all stories by Anubhav Mukherjee
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
2 hours ago
- Time of India
‘Traders facing socio-eco emergency'
Lucknow: Samajwadi Party president Akhilesh Yadav on Sunday said that the flawed policies and complicated tax system under the BJP govt has brought about an economic and social emergency for traders. Speaking at a meeting of the party's Vyapar Sabha, Akhilesh said, "This govt calls itself a double engine govt but all its 'engines' are busy in arranging 'fuel' instead of focusing on governance. " "The govt claims that it has simplified taxes like GST but it has hardly helped businesses. On the contrary, it has created more hurdles for them," he said. Citing media reports to claim that 35,000 MSMEs have shut down in the last year, he promised that SP would ensure safety and convenience for traders if it formed govt in 2027. "Business associates have also resolved to work with full responsibility, supporting the SP's election campaign from their respective places," he said. Akhilesh also paid tribute to Bhamashah and recalled his contributions to society and support to Maharana Pratap during the Battle of Haldighati. SP Vyapar Sabha state president Pradeep Jaiswal assured full support to the party from the trader community.
Time of India
3 hours ago
- Time of India
BAT bets big on India again, as ITC seeks to expand tobacco trade deal
Kolkata: In a sign of improved relations between ITC and its largest shareholder, British American Tobacco ( BAT ), the Indian company significantly grew the sale of raw tobacco to the London-headquartered cigarette maker in 2024-25 and received nearly double the amount in advances compared with the year before. BAT, popular for brands like Dunhill, Rothmans and Vuse, bought products (raw tobacco) for Rs 1,445 crore from ITC in FY25, up 35% from the previous year, as per ITC's latest annual report. The advances that ITC took from BAT increased to Rs 1,690 crore from Rs 881 crore in FY24. Advances between related parties are typically loans and other financial benefits. ITC did not specify on the type of the advance in the report. ITC, the country's largest exporter of raw tobacco, has also proposed to take shareholders' approval during the annual general meeting next month to expand its business with BAT. Under Indian regulations, related-party transactions that exceed Rs 1,000 crore or 10% of the annual consolidated turnover of a company require shareholder approval. ITC wants to take approval for raw tobacco export of up to Rs 2,320 crore by 2026-27. It is also seeking to buy '30 crore of raw international tobacco from BAT. ITC said in the annual report that it has been exporting un-manufactured tobacco to BAT for the past several years and the proposed transaction will aid the growth in business. BAT and ITC have a long bitter-sweet relation. In 2018, BAT vetoed a share-rewards programme for ITC employees. Around 2-3 decades back, BAT wanted to wrest ownership control of the Indian company but it was resisted by the then ITC chairman, KL Chugh. Chugh's successor, YC Deveshwar , worked hard to ensure that the stake held by SUUTI (Specified Undertaking of Unit Trust of India ) in ITC was not sold to BAT. He believed that BAT was only interested in tobacco and may reverse the diversification of ITC, a conglomerate with businesses ranging from paper products to FMCG and information technology. BAT's current chief executive, Tadeu Marroco, has recently said the company wanted to retain its veto rights in ITC. Last month, BAT sold a 2.5% stake in ITC for $1.5 billion (around Rs 12,926 crore), the proceeds of which the British company wanted to use to expand a share buyback programme. In 2024, BAT had sold 3.5% in ITC for about $2 billion. After those block deals, BAT now owns around 23% in ITC, making it the biggest shareholder, followed by Life Insurance Corporation of India which owns 15.5%. ITC has no promoter holding. BAT's Marroco had told analysts earlier this month that the company's stake in ITC was "still a strategic investment" and "not a financial investment". He said BAT was attracted by the size of the Indian market, demographics and potential GDP per capita growth. BAT has some inter-party relations with ITC in leaf and IT, he had said. "We want to preserve, as a consequence, a relevant stake in ITC. So we keep our two board directors, so we have influence on the board ... Obviously there was an opportunity now to increase the buyback," Marroco had said. BAT also owns a 15.3% stake in ITC Hotels, which it has indicated would exit at an opportune time since the hotel business is not the company's focus area.
Time of India
3 hours ago
- Time of India
ET Exclusive: Atmanirbhar Bharat has shown what it an do in defence–it is beyond success, says Nirmala Sitharaman
Amid global uncertainty, India's economy seems to be in a sweet spot with inflation trending lower, exports looking up, financial markets booming, the banking sector in good health and geopolitical concerns easing up a bit. Finance minister Nirmala Sitharaman has much to smile about. In a wide-ranging interview with Deepshikha Sikarwar and Vinay Pandey, she spoke about critical rare earth minerals, FTAs and the Air India crash among other things. Edited excerpts: The finance ministry's Monthly Economic Review said India was in a 'Goldilocks' situation. How do you see the economy? People have really not relented–they want their businesses to prosper. They are making sure that they're not going to be waiting for something else. They're moving ahead, and budget after budget over the past 11 years, this government under PM Modi has made sure that we make some concrete policies which will help them, and particularly the MSMEs. You find that there is a great interest in terms of wanting to expand businesses and their activities. The expansion may not be for every sector, but you can see opportunities are being identified. Otherwise, in this globally very challenged environment, our exports will not be doing as well as they have. There's more ground to gain. There are more areas where we have to work more, and also, newer market access is something that exporters are looking at. So, it's a cumulation of all this. I said this to (public sector) banks on Friday when I reviewed them. Banks and credit are pushing forward–although banks still have a lot more cash with which they can move forward. So, one touches the other, and as a result, you have a good momentum on the ground. And I hope going forward, I would think this momentum will be accentuated because the monsoon seems to come up with good news. So, across the country, you find rains are good and reservoirs are all getting filled. So, agriculture should be doing well, as much as MSMEs and export-oriented industries. The PLI (programme) is actually showing what India's well-planned, well-tailored schemes can give us. The macroeconomic indicators look good. Much has been done over past 11 years. Focus on fiscal consolidation has helped. How do you see things going ahead? Since Covid, there has not been a single year without a new challenge adding to the basket of concerns. It requires steady hold, policy consistency, and above all, where possible–it's not just jargon–ease of doing business is taken seriously from the Centre to states and to the third tier, and also making sure there is consistency in taxation. Tax authorities are looking at further simplification–whether it's GST (goods and services tax) or income tax–and also looking at compliances. Forms that they fill, as much as possible, we are automating it, auto-filling. These are things we have to keep doing and the steps for reforms, just not in terms of ease of doing business, but also making laws which are simpler and, where necessary, go in for reforms. In the first few years of the Narendra Modi government, we saw GST and then Insolvency and Bankruptcy Code (IBC). We had agricultural reforms, but they were rolled back. Is there an appetite to push for some big-ticket reforms going forward? There shall not be any holding back on reforms. The budget itself this time mentioned how we are looking at GST to be simplified, how you will have a second version of GST, and work is going on. That would bring in a lot of difference, not just in terms of lesser rates, but also in terms of compliance. Those grey areas–which left a lot for the courts to interpret, and different courts give different rulings–we are working on that to make sure the language is straightforward and not yielding to too many interpretations. We will be looking at land monetisation, which has been going at a pace, but the pace would have to pick up. So it's not selling the land, it is more deriving commercial value out of this. I will probably also be focusing on strengthening regional rural banks (RRBs) because we did spend some time consolidating them, giving them telebanking and also net banking. They've all come together and today RRBs are as good as any other public sector bank. So, RRBs will be used for pushing a lot of rural credit, strengthening the rural economy, more so with the Dhan-Dhaanya Krishi Yojana districts, which are going to be driven from the point of view of agricultural productivity, also productivity from the point of view of the overall economy. So, at one go, like the way honourable PM pushed the aspirational districts to meet saturation in most of the schemes, the Dhan-Dhaanya Krishi Yojana will make agricultural productivity the centre focus, and the value addition as the way in which farmers' income can be increased even in these areas. So these are areas in which in fact I did suggest to the banks that in these 100 districts–once those names are out–banks should come up with tailor-made schemes for them because not all 100 districts are going to be similar. You have spoken about simplified GST. Does that mean reducing slabs or looking at global best practices & making changes? That's also a key factor, that is in consideration. The GoM (group of ministers) has also spent some time. I have literally, between the day when the budget was presented till today, had several rounds of meetings with the CBIC (Central Board of Indirect Taxes and Customs), with the GST group of officials, and also looked into the rates prevalent for similar category goods but for different reasons, they are so different. Also the inversion which kept creeping in. So, this is actually a lot of work that we have done. I hope to finish it soon. There are newer challenges emerging–rare earths shortage and issue of specialty fertilisers now. How do you ringfence industry, businesses, the economy from these shocks? The government has made a lot of efforts on critical minerals and fertilisers. More steps can also be undertaken to identify newer sources so that we are not dependent on one source. Critical minerals are not required in huge amounts, but even for small quantities we should ensure that these are not from one source. Procurement can be from various different sources. There's enough work done in identifying these critical minerals from the policy side. The Cabinet has given approval for duty-free imports of 23 of them, and reduced duties for one or two of them. The department has been also searching for other sources and they've had some success. It's not as if it's a wild goose chase. On fertiliser, India has never been found sitting back and watching. We've always been well up in the curve to make sure we forge ties with countries from whom we import. Equally, focus has been on boosting domestic production and R&D, which has led to us getting nano fertiliser. Nano DAP (diammonium phosphate) is also being worked on. So, we are literally on the job for both. Atmanirbhar Bharat was aimed at reducing dependence on overseas inputs. How do you get industry to diversify the supply chain? Is that a worry? Ultimately, these are commercial decisions. I can't obviously go on telling the industry don't do this, do that. But as much as possible, where you recognise that gradually dependence on one source is increasing, it is for us, together with the CIIs (Confederation of Industries) and Ficcis of the world, to talk to them and find out if they can shift some of this from some other source. The nudge element is all that we can work on, not beyond. But, of course, the effort of the government will go on to identify and have some understanding with new areas from where we can expect industry to benefit by getting a second and third source. The way geopolitics is evolving, does Make in India need to be more ambitious? Atmanirbhar (Bharat) has actually shown what it can do in the defence production area. You cannot say it's a success; it is beyond that. The extent to which the blossoming has happened of Indian industry–and most of them are medium and small units–in producing such components, such defence equipment, which are now finding markets all over the world within one year. Our exports have grown to `25,000-30,000 crore and the expectation is it will go up further. So, Atmanirbhar has proved… and similarly, in fertilisers, the government opened up otherwise locked-up units. So, on atmanirbharta, if you see, there are areas where the success is astounding. Semiconductor chips and mobiles are all part of this larger Atmanirbhar. Give them an incentive where it is required, but let it be productivity-linked. We are signing multiple FTAs. In the government, is there any thinking on getting industry ready, be prepared to deal with these FTAs? To his credit, I must say (commerce and industry minister) Piyush Goyalji engages with industry on a regular basis. He talks with industries belonging to a particular sector, talks to MSMEs, to exporters. And when there is a particular FTA being negotiated, as to what give and take we can have, even on that he intensely engages with industry. So there is industry engagement prior to agreeing to a FTA and industry engagement post agreement as well. I remember after the Australia trade deal was agreed upon he made sure that the Australian exporters and importers were here and tied up with industry groups in India to ensure that industry can benefit from that agreement. We should recognise that the commerce ministry has extended its work area in consultation pre and post agreement to familiarise trade bodies with what the actual benefit can be and how they utilise it. That's about newer agreements. But even on the review of previous ones like ASEAN, there's so much happening. So, this consultation with industry, engaging with them and building awareness and seeking their inputs has been done both prior to and post an agreement, and that process will continue. US President Donald Trump has spoken about a big trade deal with India. Will it be an early harvest or a full-fledged deal? There are concerns over agriculture… We have ensured that the agriculture minister and his team are informing the commerce negotiating team in such a way that their concerns are very clearly placed. Whatever agreement happens, our concerns on agriculture and dairy are well in the minds of the negotiators, and we shall ensure there is no hurting agriculture, farmers or even dairy. The Reserve Bank of India ( RBI ) has cut rates by a percentage point, but that has not really been transmitted in full. Do you see that happening soon? Bankers are very optimistic, and they've welcomed the front-loading of the cut by the RBI. Even in the earlier round, when the RBI had reduced, banks passed on. Of course, there will be some time lag as banks need to handle both the lending side and the deposit side. They have a tightrope walk to follow. It's not as if they wouldn't want to transmit the reduction. It has an impact. Are deposits a challenge for banks? In my review of banks' performance on Friday, this was one of the things which we spent considerable time discussing. This is not the first time I've spoken to them about CASA (Current Account and Savings Account) coming down. We have been talking for two years, because the trend of CASA coming down has become more apparent since Covid when retail investors moved to mutual funds or the stock markets. We had an elaborate discussion on the issue. It is different from the traditional practice of deposits coming, where money was available to banks fairly cheap, and then the lending could happen and you maintained adeposit-credit ratio, which the RBI used to monitor. Banks recognised that this is becoming a challenge. But, banks are fit and their parameters are good to go to market and raise money. This is also an option available to them. Many of them have used it as well. But does that justify looking at the market alone as a source for money rather than core banking business, which is to collect deposits and lend? Should we not go back in full force to get CASA back on track is a discussion among banks. They do recognise that even if it is not going to be as before, they will have to restore it to somewhat good levels. That's one part of the problem. But as finance minister, when you see the entire financial markets, there's a vibrant equity market, which is raising capital. Overall, I think it is good that there are so many options for saving. One is sacred and the others are not may not be the best way to look at it. After all, the person who has that spare money to invest or to save is the best judge of where he wants to put it. If he thinks that this post-Covid era is giving him a good option of earning far more by being in the markets, he should be praised for it. Also, companies and their good governance is getting reflected in the public documents that they put out through the MCA (Ministry of Corporate Affairs), through the AGMs (Annual General Meetings). People get to know which are the companies that are better managed. Deepening of our markets is actually showing and pleasantly for me retailers are benefitting, ordinary citizens are benefitting. Our systems are transparent. They are digitised and can be accessed from home. Individuals are able to do it on their own rather than depend on others to help them out. These are signs of a very good dynamic economy, which clearly indicates that monies are safe and regulators are doing their job. So I welcome this. The government carried out one bank consolidation exercise. When you reviewed the performance of banks, was that something that's needed again? When you talk about the size of the bank, it is not just what I can bring in through amalgamations, it's more also the business expansion for a bank. For instance, yesterday, State Bank of India showed that it's business has expended to `96 lakh crore in FY25 from `76 lakh crore two years back. This shows expansion of SBI's business, not just its foreign but more Indian business, is indicative of the largeness of a bank is not necessarily through amalgamations alone. Banks are now seeing newer and newer areas into which they can get in and be able to expand their portfolios. If that is true of SBI, given its size advantage, it is true of other banks as well. Canara Bank and Bank of Baroda are also showing similar growth signs in their businesses. Some of them specialise in some areas with some focused on MSME, some on large industry, and all of them equally focused on renewables, vying with each other for healthy business expansion. There are banks which are coming in from abroad. I would think the banking sector here is going through one of the best cyclical phases in which scope for expansion is there. They are expanding as well and there is interest in foreign banks to come into India because they see this expansion. Banks are organically growing and widening their net. But more banks are welcome. Let me add that as well. What about private bank licences? I quite fully understand the RBI's approach in giving licences. They have a very well laid out process—apply, then you go through the process of compliance, prove beyond doubt. Banking is such an area where the regulator has to be clear that fit-for-purpose has been absolutely examined. Even a little blip can cost the entire system to be affected by the contagion, because after all, this is an area where public money, government's money is all there. Banking is not a sector where we can be slightly relaxed and then agitate about oh, what's gone wrong and how do you contain it so that it doesn't spread. I think the regulator is fully seized of it and they've laid out the processes. The only thing on which, if at all, I would want to say is whatever be the decision of the regulator, give licence, approve or deny licence and say no, it cannot happen. It should happen in a reasonable time. What about IDBI's privatisation? It's going on. Will it happen within this financial year? Expected. The government has been pushing public capital expenditure. How do you see the private sector's response? Of course, they are coming in. With all that (global situation), I think the Indian industry was also being cautious, but now I can see them moving and coming out. (On Friday) banks told me that the private sector is also approaching for a lot of banking facilities, even as they are sitting with quite a lot of cash. So, you have that picture of the private sector, with or without the banks, in a position to take acall on where they want to expand. With all this said, there's also this equal concern that many family offices are being set up. Passive earning is happening through family offices being set up in different parts of the world, the nearest are Singapore and Dubai. But I think with all that said, I am optimistic that Indian Industry has certainly started moving, investing, expanding. Foreign Direct Investment (FDI) has been a bit volatile. There has been a surge in outflows that we are seeing–established companies, PEs, VCs selling stakes and exiting. Does that bother you? Ithink it's part of the process, that doesn't worry me. They are able to find an exit. Exit is equally an important feature for investments to come in. Unless your exit is enabled and facilitated, investments don't come in, right? I think exit is a good indicator that your economy is vibrant enough to invite, invest, do business and then when you want to, please take your profits away. I think it's a very healthy signal. Operation Sindoor is still going on. Could that pose a fiscal challenge? From the point of deficit, no. Prime Minister Modi has always believed that Indian defence forces should be given their due. That is why, if you remember since 2014, the priority has been to get bulletproof jackets, get arsenal, and ammunition that is required. Is it going to be for five-day war, 14-day war, 32-day war, 45-day war? The debate about giving resources to the armed forces, as they would require, was not a debate at all. They had to be given everything. And the deficiencies of almost 10 years under the UPA , when nothing was purchased, or even if they were purchased, they were purchased per the kickback received rather than what the defence forces required. All that is a story of the past. We have ensured that the small critical things as well as the big important vectors will all be purchased as per the defence forces' requirements and that will continue without worry. The IBC amendment is ready. Is it likely to be introduced in the monsoon session as also the competition Bill. Yes, I hope to get it. It's moving. The Air India plane crash hit the country hard... First of all, to be fair, India's airlines and the growth of the industry continues to be a very good story. This incident in Ahmedabad was absolutely tragic, no words to say. And you're right in saying it hit the nation's psyche. It had avery big impact. The memories will last for a very long time, no doubt. Every corrective measure should be taken. Ours is a large country, we need to have better connectivity. I'm sure we'll come out of it.
