Supreme Court quashes Tata Steel's 890.52cr GST bill, 1,781cr penalty
Big news for Tata Steel: the Supreme Court has scrapped a massive ₹890.52 crore GST bill that was hanging over the company.
This all started with a dispute about input tax credit (ITC) claims from between financial years 2018-19 and 2020-21, which tax authorities in Jamshedpur said were too high.
With this ruling, Tata Steel's demand and matching penalty of about ₹1,781 crore, excluding interest, have been quashed, and applicable interest was also quashed.
However, the tax department still has a chance to initiate appropriate proceedings under Section 74 of the CGST Act if it complies with the conditions, and any fresh order in the matter must be passed by February 28, 2027.
Notice alleged Tata Steel excess ITC
The case kicked off in June 2025 when Tata Steel got a notice accusing it of claiming extra ITC.
After Tata Steel approached the Jharkhand High Court, which disposed of the petition and allowed it to pursue the appellate route, it took things to the Supreme Court.
On August 25, 2026, the Supreme Court sided with Tata Steel but left room for limited new action if needed, so it's a win for now, but not necessarily game over.