Sapphire Foods Receives Demand Order of ₹20.33 Crore from CGST
Sapphire Foods India Limited received a demand order of ₹20.33 crore from CGST Rohtak. The order includes ₹10.16 crore tax and ₹10.16 crore penalty for alleged excess ITC utilization. The company believes the claim is not maintainable and expects no material impact.
While the company states there is no material impact, a demand order of ₹20.33 crore, even if contested, can have a medium-term financial and operational implication.
The company has received a demand order for a significant amount, including tax and penalty, which is a negative development.
Sapphire Foods India Limited has received a demand order dated December 31, 2025, from the Office of the Principal Commissioner, Central Goods & Services Tax (CGST) Commissionerate, Rohtak, Haryana. This order is in response to a show cause cum demand notice issued under Section 74 of the CGST Act, 2017, for the period of April 2018 to March 2022.
The authorities alleged that the company had availed excess Input Tax Credit (ITC) compared to GSTR2A and incorrectly utilized ITC against GST liability on outward supply. The company submitted necessary explanations and documents, but the authorities confirmed the proposal in the show cause notice.
The demand order amounts to ₹203.25 million (₹20.33 crore), comprising a tax liability of ₹101.62 million (₹10.16 crore) and a penalty of ₹101.62 million (₹10.16 crore). Sapphire Foods India Limited stated that the claim made by the authority is not maintainable and that there is no material impact on its financial, operational, or other activities due to this order. The company is currently evaluating the order and will take necessary steps to respond.
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Sapphire Foods India Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by Sapphire Foods India Limited. Read the original for the full detail.