Tata Steel has secured a significant victory in a GST compensation cess dispute, with authorities setting aside the entire tax demand of ₹161.52 crores and imposing no penalty on the company.

Favourable GST Order Details

Tata Steel received a favourable order from the Joint Commissioner of CGST Central Excise, Jamshedpur, Jharkhand. The order provides complete relief to the company in a compensation cess matter that had been under adjudication.

Background of the Case

The dispute originated from a show cause notice issued by the Directorate General of GST Intelligence, Regional Unit, Jamshedpur. The notice was issued against erstwhile Tata Steel Long Products Limited (TSLP), which amalgamated with Tata Steel effective November 15, 2023, through a scheme of amalgamation.

The GST authorities had raised concerns about input tax credit compensation cess amounting to ₹161.52 crores allegedly irregularly availed by TSLP during April 2019 through February 2024. The show cause notice also questioned:

• Input tax credit of compensation cess amounting to ₹160.28 crores claimed to be already reversed/deposited via GSTR-3B returns of December 2022 and August 2023
• Potential penalty of ₹161.52 crores on the company

Authority's Decision

The Joint Commissioner took cognizance of the fact that Tata Steel had already paid the necessary GST amount of ₹160.28 crores while filing its GST returns. This amount was appropriated to the government exchequer. Additionally, the balance tax demand of ₹1.23 crores was dropped by the authority.

Regulatory Compliance

Tata Steel made this disclosure in compliance with Regulations 30 and 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company had previously disclosed the receipt of the show cause notice and has now updated stakeholders following the management's evaluation of the favourable order.

This resolution eliminates a significant contingent liability for Tata Steel and provides clarity on the GST compensation cess matter related to its amalgamated entity.

Tata Steel has completed the acquisition of equity shares in T Steel Holdings Pte. Ltd (TSHP) for USD 150 million (₹1,354.94 crore) on December 19, 2025. The transaction was disclosed to stock exchanges under regulatory compliance requirements, marking the latest in a series of fund infusions into the wholly owned foreign subsidiary.

Transaction Overview

Tata Steel purchased 1.49 billion (148,80,95,239) equity shares with a face value of USD 0.1008 each in T Steel Holdings Pte. Ltd. Following this acquisition, TSHP continues to remain a wholly owned foreign subsidiary of Tata Steel Limited.

Regulatory Compliance

Tata Steel made this disclosure in compliance with Regulation 30 and 51 read with Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended. The company referenced previous disclosures made on May 12, 2025, June 25, 2025, July 10, 2025, August 26, 2025, September 24, 2025, and October 29, 2025 regarding fund infusions into TSHP.

Strategic Investment Context

This acquisition represents a continuation of Tata Steel's strategic investment approach in strengthening its subsidiary operations. The USD to INR exchange rate of ₹90.33 was applied as published by the Reserve Bank of India on December 17, 2025, for the transaction valuation.

The disclosure was signed by Parvatheesam Kanchinadham, Company Secretary and Chief Legal Officer of Tata Steel Limited, and communicated to both BSE Limited and National Stock Exchange of India Limited.