New Delhi11 hours ago
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Tata Steel has received a notice from the Income Tax Department for misuse of input tax credit (ITC) of more than Rs 1,007 crore. This notice is from the financial year 2018-19 to 2022-23. On Sunday (June 29), the company informed the stock exchange.
In this notice from Ranchi Commissioner (Audit), Central Tax office on 27 June, Tata Steel has been asked to appear before the Additional/Joint Commissioner of Central GST and Central Excise in Jamshedpur within 30 days.
According to the notice, the company wrongly took advantage of ITC by violating section 74 (1) of CGST/SGST Act 2017 and section 20 of IGST Act 2017.
Tata Steel said- Notice will not affect the company's financial, operation and other activities. The company's market cap is 2.02 lakh crore rupees.
Actually outstanding GST ₹ 493 Crore
Tata Steel made it clear that it has already paid a GST of Rs 514.19 crore during the normal business. The company says that it is proposed to adjust this amount in the notice, so the outstanding GST is just Rs 493.35 crore.
The company said- this notice is baseless
The company believes that this notice is baseless and will respond to this within the stipulated time. Tata Steel also said that this notice would not affect the company's financial, operation and other activities. Explain that input tax credit under GST means that business can adjust the tax paid on its input with your output tax liability.
Company shares climbed 18% in six months
On Friday, Tata Steel's stock rose 0.47% to close at Rs 161.29. In the last five days, the company's stock has climbed 7%. 1% dropped in a month and climbed 18% in six months. At the same time, the company's stock has dropped 7% in a year. The company's market cap is 2.02 lakh crore rupees.
