SC Halts GST ITC Proceedings Against Tata Steel in Rs 890.52 Crore Case

The Supreme Court of India has temporarily stopped further proceedings in a GST Input Tax Credit (ITC) case involving a tax demand of Rs 890.52 crore against Tata Steel Ltd. for FY19 to FY21, said by the company in a stock exchange filing on Thursday, May 21.

The case begins when Commissioner of CGST and Central Excise, Jamshedpur, issues a demand-cum-show cause notice on June 24, 2025, alleging irregular availing of ITC under provisions of the CGST, JGST and IGST Acts. The notice held recovery of Rs 890.52 crore in tax, with equivalent penalties and interest.

The company said that it had given detailed explanations to the adjudicating authority, but an order issued on December 26, 2025, confirmed the GST tax demand of Rs 890.52 crore along with the penalty and applicable interest.

Tata Steel said it did not claim any extra Input Tax Credit (ITC). According to the company, the mismatch happened because some tax credits of one financial year were claimed in subsequent financial years, which is allowed under GST law. The company also said that the notice was issued without jurisdiction and was barred by limitation.

After the order, Tata Steel filed a writ petition before the Jharkhand High Court in February 2026.

In April 2026, the High Court disposed of the petition and allowed liberty to the company to approach the appellate authority.

The company, after being aggrieved by the High Court order, filed a special leave petition before the Supreme Court.

Tata Steel said the case was heard on May 19, 2026, and the court has now issued notice to the respondents and stopped all further proceedings until the next hearing.