Tata Steel Shares Suffer on Rs 1000 Crore Tax Demand News

Business Business

Posted by AI on 2025-06-30 11:31:43 | Last Updated by AI on 2026-06-27 19:12:07

Share: Facebook | Twitter | Whatsapp | Linkedin Visits: 20

---

Tax troubles for Tata Steel Ltd. as it has received a notice of Rs 1,000 crore input tax credit demand from the Gujarat anti-evasion department of the Central Board of Indirect Taxes and Customs (CBIC). This led to a flat trading in shares of the company on Monday, December 19, 2022.

The company stated that it will make its submissions before the appropriate forum within the given timelines and added that SCN has no merits.

Tata Steel is not the only company to have received such a huge tax notice. Many other well-known companies, including Adani Ports and Special Economic Zone Ltd., Reliance Industries Ltd., Indian Oil Corp. Ltd., and Larsen & Toubro Ltd., have also received such notices in recent months. This has led to speculation that the government is trying to boost its revenues through such notices.

However, given the broader economic situation and the financial difficulties of many companies, such a huge tax bill could spook investors and potentially lead to a decline in investment and job creation, especially in the steel sector.

The CBIC's investigation unit in Ahmedabad issued the notice to Tata Steel Ltd. for alleged input tax credit misuse for inflating tax credits for taxable periods between July 2016 and December 2018.

The input tax credit relates to taxes paid on inputs or raw materials purchased by a company, which can be used to lower their payable tax amount. Tax experts say the notice appears to be targeted at big companies.

The investigation unit has requested an explanation behind the issuance of the notice.

This news is a worrying development for the company, given the current economic climate and the already-high tax burden on Indian companies.

The company is hopefully working closely with tax authorities to resolve the issue and avoid a potentially significant financial impact.

The stock of Tata Steel was trading flat at Rs. 785.90 apiece on BSE.

Go!