Tata Steel has received a GST demand order totaling ₹890.52 crores, along with an equal penalty amount and applicable interest, related to alleged irregular Input Tax Credit claims during FY2018-19 through FY2020-21. The Joint Commissioner of CGST & Central Excise, Jamshedpur, passed the order on December 26, 2025, which the company received on December 27, 2025.

Background of the GST Case

The matter originated from a Demand cum Show Cause Notice (SCN) received from the Office of the Commissioner of CGST & Central Excise, Jamshedpur. The notice alleged irregular availment of Input Tax Credit in contravention of Sections 16 and 41 of the Central Goods and Services Tax Act, 2017, read with applicable provisions of the Integrated Goods and Services Tax Act, 2017.

The SCN required the company to show cause before the Additional/Joint Commissioner of CGST & Central Excise, Jamshedpur, as to why the Input Tax Credit amounting to ₹890.52 crores should not be demanded and recovered, along with interest and penalty under the applicable GST provisions.

Company's Position and Defense

Tata Steel maintains that proper cognizance was not taken of the submissions made during the adjudication process. The company's defense centers on the nature of the alleged excess Input Tax Credit, which was identified by comparing ITC claimed in monthly returns against ITC reflected in the GST Portal.

According to the company, there is no actual excess Input Tax Credit claimed, and the difference arises from credit pertaining to one financial year but availed in the subsequent financial year, which is permissible under GST laws.

Legal and Financial Impact

The company has indicated its intention to contest the order before the appropriate forum within statutory timelines. Tata Steel believes that given the merits of the case and strong grounds available for defense, there may be no impact on the company's financial, operational, or other activities arising from the said order.

The total financial exposure from this order includes the primary tax demand of ₹890.52 crores, penalty of ₹890.52 crores, and interest charges on the total tax amount.

Regulatory Compliance

This disclosure was made 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. The company had previously disclosed the receipt of the show cause notice on June 25, 2025, and this update provides the current status following the adjudication order.

The disclosure was signed by Parvatheesam Kanchinadham, Company Secretary and Chief Legal Officer, and communicated to both BSE Limited and National Stock Exchange of India Limited on December 28, 2025.

Dutch nonprofit Stichting Frisse Wind.nu has initiated legal proceedings against Tata Steel 's Netherlands operations, seeking €1.4 billion ($1.6 billion) in compensation for alleged environmental and health damage caused by the company's emissions.

Legal Action Details

The lawsuit was filed at the District Court North Holland in Haarlem, targeting Tata Steel's operations in the coastal village of Velsen-Noord. The compensation claim seeks damages on behalf of local residents for several key issues:

Regulatory Pressure Intensifies

This legal action represents the latest challenge facing Tata Steel's European operations amid escalating environmental scrutiny. Dutch regulators significantly increased pressure on the company throughout 2024, implementing severe enforcement measures.

The regulatory actions include threats of substantial financial penalties and operational restrictions:

• Potential fines of nearly €27 million
• Warnings to shutter a coke plant in IJmuiden port city
• Requirements for substantial reduction in toxic emissions

Ongoing Investigations

Tata Steel faces additional legal challenges beyond the current lawsuit. In 2022, Dutch prosecutors launched an investigation examining whether the company and one of its partners deliberately contaminated local environmental resources with hazardous substances, including soil, air, and water contamination.

Company Response and Legal Process

Tata Steel acknowledged receipt of the legal documents and stated it is examining the case details. The company expressed confidence in its defense, claiming to have "strong arguments" to defend its position in the proceedings.

The legal process follows a structured timeline under the collective actions regime:

Emissions Reduction Investment

In September, Tata Steel announced significant investment plans to address environmental concerns at its Netherlands operations. The company outlined a comprehensive emissions reduction project with substantial financial commitments from both corporate and government sources.

This legal challenge underscores the mounting environmental and financial pressures facing Tata Steel's European operations, as the company navigates regulatory compliance while investing billions in emissions reduction technology.