Sapphire Foods India Limited Receives Show Cause Notice from Chennai Authorities
Sapphire Foods India Limited recently received a show cause notice from the Assistant Commissioner (ST) Koyambedu Assessment Circle in Chennai, Tamil Nadu, concerning its Goods and Services Tax (GST) compliance.The notices were issued under Section 73 of the Tamil Nadu SGST Act 2017. The authorities have examined the tax period spanning from April 2022 to March 2023, and subsequently from April 2023 to March 2024. The company confirmed receiving both show cause notices on May 26, 2026.
Allegations and Financial Demand
The core of the notices alleges that the company has availed excess Input tax credit compared with the GSTR-2B records.The total financial demand notice issued cumulatively amounts to INR 977.06 million.
Key details regarding the notice are summarized below:
| Detail | Description |
|---|---|
| Issuing Authority | Assistant Commissioner (ST) Koyambedu Assessment Circle Chennai, Tamil Nadu. |
| Legislation | Section 73 of Tamil Nadu SGST Act 2017. |
| Tax Period Covered | April 2022 to March 2023 and April 2023 to March 2024. |
| Financial Demand | INR 977.06 million. |
| Nature of Allegation | Availing excess Input tax credit as compared with GSTR-2B. |
Company Response and Impact Assessment
Regarding the financial and operational impact, the company stated that the claim made by the authority is not maintainable. Sapphire Foods India Limited noted that there is no material impact on the company's financial, operational, or other activities due to the issuance of this notice.The company stated that it is currently in the process of evaluating the notice and will take necessary steps to respond to the authorities.
SAPPHIRE Stock Price Movement
As of 10:01 AM, shares of Sapphire Foods India Limited are shedding 0.55% in live trading, currently sitting at ₹184.03. The stock is moving on a volume of 48,965 shares, reflecting current intraday market activity.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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