Tata Steel receives tax demand notice of ₹1000 crore, ITC fraud alleged

News Topical, Digital Desk : Tata Steel, one of the country's largest steel companies, has been issued a show-cause notice and tax demand notice of Rs 1,000 crore due to irregularities in input tax credit (ITC). This notice was issued on June 28. The company said in an exchange filing on June 29 that this notice has come from the office of the Central Tax, Ranchi Audit Commissioner.

It talks about taking action under Section 74(1) of the CGST Act and Section 20 of the IGST Act for misuse of input tax credit between the financial years 2018-19 to 2022-23. Under this notice, the company will have to present its side before the Additional/Joint Commissioner (CGST and Excise) located in Jamshedpur within 30 days.

The company responding to the notice also said in the exchange filing that out of the GST demand amount of Rs 1000 crore, Tata Steel has already paid Rs 514 crore under business operations. This amount is being adjusted in the notice, so the total potential tax liability comes to around Rs 493 crore. Tata Steel says that the company is working as per the law and is in the process of giving appropriate legal response to this notice. Share performance On Friday, the company's stock closed at Rs 161.29 with a gain of 0.47 per cent. In the last one year, the company's stock has seen a decline of 7.34 percent. 

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