Tata Steel Faces ₹368 Cr Penalty Appeal on GST Matter

Tata Steel Limited has disclosed that the Department has filed an appeal before the Commissioner (Appeals) challenging the Adjudication Order dated December 18, 2026. The appeal pertains to the penalty amount of ₹368,72,21,158/- that was dropped by the Adjudicating Authority in relation to a GST demand. The company had previously received a show cause notice for disallowance of Input Tax Credit amounting to ₹1007,54,83,342/-, of which ₹493,35,47,131/- was the alleged exposure. The Adjudicating Authority had directed payment of ₹493,35,47,131/- tax, ₹638,82,62,185/- penalty, and interest. The company had filed a Writ Petition challenging this order, and the High Court of Jharkhand has granted a stay. Tata Steel believes it has a strong case and will contest the appeal, stating there is no impact on its financial or operational activities.