Tata Technologies has received a tax order demanding INR 20.09 lakh plus an equivalent penalty and interest, totaling approximately INR 40 lakh. The demand arises from a disallowance of input tax credit (ITC) under the Central Goods and Services Tax Act, 2017. The company is contesting the order and filing an appeal. The company believes this will not materially impact financials or operations.
Tax Demand Received
Tata Technologies has received an order from the Assistant Commissioner of Central Tax, Pune, demanding tax related to the rejection of input tax credit (ITC). The order, dated September 8, 2025, specifies a tax demand of INR 20,09,199.
Details of Disallowance
The tax demand includes an equivalent penalty of INR 20,09,199, plus applicable interest. This brings the total amount owed to approximately INR 40 lakh. The disallowance is based on the claim that the ITC was incorrectly availed under Section 16(2) of the CGST Act, 2017, because a vendor did not submit the relevant GSTR 3B returns for the period in question. This was communicated on September 15, 2025.
Company Response
Tata Technologies is in the process of filing an appeal against the order. The company maintains that the ITC was correctly availed and believes that there will be no material impact on its financials, operations, or other activities as a result of this penalty. The company will pursue all options to defend its position and ensure compliance with GST provisions.
Source: BSE
