Sapphire Foods India Limited has informed the Exchange about Action(s) taken or orders passed
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Awaiting price reaction for this filing.
Sapphire Foods India has informed exchanges about two tax-related developments. First, the Commissioner of Income Tax (Appeals), Ranchi has dismissed the company's appeal covering assessment years 2016-17 and 2018-19 to 2023-24, confirming an income tax demand of ₹170.41 million (including interest of ₹39.12 million) for alleged non-deduction of TDS on year-end provisions. Second, the Additional Commissioner, Central GST Commissionerate, Rohtak has issued a show cause cum demand notice of ₹101.62 million under Section 74 of the CGST Act for April 2018 to March 2022, alleging excess input tax credit claims versus GSTR2A and incorrect ITC utilisation. The combined potential exposure is roughly ₹272 million. The company has stated both claims are not maintainable, sees no material impact on operations or finances, and plans to challenge both at higher appellate forums.
Short-term sentiment may be mildly negative due to the aggregate tax demand of ~₹272 million, but since the company disputes the claims and intends to appeal further, the immediate financial impact is not material. Shareholders should watch for updates on the appeal outcomes, as an adverse final ruling could affect future cash flows.