Sapphire Foods India Limited received show cause notices from the Tamil Nadu GST authorities under Section 73 of the Tamil Nadu SGST Act 2017. The notices, issued through DRC-01 dated May 26, 2026, were sent by the office of the Assistant Commissioner (ST), Koyambedu Assessment Circle, Chennai. Sapphire Foods received both notices on the same date they were issued.
The show cause notices pertain to two separate financial years - April 2022 to March 2023 and April 2023 to March 2024. The authorities have raised a cumulative tax demand of Rs 97.71 crore through these notices. The allegation is that Sapphire Foods availed excess input tax credit compared with the amounts reflected in its GSTR-2B returns for these two assessment periods under the Tamil Nadu GST regime.
Sapphire Foods stated that the claim made by the authority is not maintainable. The company assessed that there is no material impact on its financial, operational, or other activities arising from the issuance of these notices. Sapphire Foods is evaluating the notices and will take necessary steps to file an appropriate response with the tax authorities.
The disclosure was made to the National Stock Exchange of India and BSE Limited under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The filing was submitted on May 27, 2026, by Sachin Dudam, Company Secretary and Compliance Officer of Sapphire Foods. The company attached the relevant details of the notices as an annexure to the exchange filing.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.