REG - Tata Steel Limited - Disclosure under SEBI Listing Regulations, 2015

TATA SteelAnnouncement

23/06/2025 07:00

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RNS Number : 8614N  Tata Steel Limited  21 June 2025

 
 

 

June 21, 2025

London Stock Exchange

London

Dear Madam, Sirs,

 

Sub: Disclosure under Regulation 30 of Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015

 

This has reference to the aforementioned subject.

 

On June 19, 2025, Tata Steel Limited ('Company') has received a Show Cause cum
Demand Notice dated June 17, 2025 ('SCN'), issued by Directorate General of
GST Intelligence, Regional Unit, Jamshedpur against erstwhile Tata Steel Long
Products Limited ('TSLP') which has amalgamated into and with the Company
effective November 15, 2023, through a Scheme of Amalgamation amongst the
Company and TSLP and their respective shareholders. The SCN is issued in
connection with irregular availing of input tax credit of compensation cess on
inward supply of goods (i.e., coal) by TSLP, which allegedly contravenes
Section 17(2) of Central Goods and Services Tax Act, 2017 read with Rule 42 of
the Central Goods and Services Tax Rules, 2017 and Section 11 of the GST
(Compensation to States) Act, 2017, during the period April 2019 through
February 2024.

 

Further details of the SCN are provided in the table below:

 

 Particulars                                                             Details
 Brief details of litigation viz. name(s) of the opposing party, court/
 tribunal/ agency where litigation is filed, brief details of

 dispute/litigation.                                                     On June 19, 2025, Tata Steel Limited ('Company') has received a Show Cause cum
                                                                         Demand Notice dated June 17, 2025 ('SCN'), issued by Directorate General of
                                                                         GST Intelligence, Regional Unit, Jamshedpur against erstwhile Tata Steel Long
                                                                         Products Limited ('TSLP') which has amalgamated into and with the Company
                                                                         effective November 15, 2023.

                                                                         The SCN is issued in connection with irregular availing of input tax credit of
                                                                         compensation cess on taxable supply of goods (i.e., coal) which allegedly
                                                                         contravenes Section 17(2) of Central Goods and Services Tax Act, 2017 read
                                                                         with Rule 42 of the Central Goods and Services Tax Rules, 2017 and Section 11
                                                                         of the Goods and Services Tax (Compensation to States) Act, 2017, during the
                                                                         period April 2019 through February 2024.

                                                                         As per the SCN, the Company is required to show cause before the Joint
                                                                         Commissioner / Additional Commissioner (Adjudication), Central Goods and
                                                                         Services Tax & Central Excise, Jamshedpur Commissionerate, Bistupur,
                                                                         Jamshedpur ('Adjudicating Authority') within 30 days of issue of the SCN as to
                                                                         why:

                                                                         1.   the input tax credit compensation cess amounting to ₹161,51,51,635/-
                                                                         which was supposedly, irregularly availed by erstwhile TSLP shall not be
                                                                         demanded and recovered from the Company under Section 74(1) of the Central
                                                                         Goods and Services Tax Act, 2017 and Jharkhand Goods and Services Tax Act,
                                                                         2017 read with Section 20 of the Integrated Goods and Services Tax Act, 2017
                                                                         read with Section 11 of the Goods and Services Tax (Compensation to States)
                                                                         Act, 2017;

                                                                         2.   the input tax credit of compensation cess amounting to
                                                                         ₹160,28,29,018/- claimed to be already reversed/deposited vide GSTR-3B
                                                                         return of December 2022 and August 2023 should not be appropriated, subject to
                                                                         verification of its authenticity by the Adjudicating Authority; and

                                                                         3.   penalty amounting to ₹161,51,51,635/- should not be levied on the
                                                                         Company.

 Expected financial implications, if any, due to compensation, penalty
 etc./quantum of claims, if any

                                                                         The Company believes that the SCN has no merits, and the Company shall make
                                                                         its submissions before the Adjudicating Authority within the given timelines.

                                                                         There is no impact on financial, operational, or other activities of Tata
                                                                         Steel Limited, arising from the said SCN.

 

 

 

 

 

 

 

 

 

 

The Company was studying the SCN and evaluating its compliance obligations and
hence, this disclosure is being made as on the even date.

 

This disclosure is being made by the Company in compliance with Regulations 30
and 51 read with Para B of Part A of Schedule III of the Securities and
Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015, as amended, read with related SEBI Circulars issued in this
regard.

 

This is for your information and records.

 

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