NSE/BSE Codes: NSE: SAPPHIRE / BSE: 543397

Summary of Key Information:

Nature of Event / Disclosure:

Regulatory disclosure regarding favorable outcome of GST proceedings. The company received a favorable order from the Assistant Commissioner, Koyambedu, dismissing show cause notices cumulatively amounting to ₹977.06 million under Section 73 of Tamil Nadu SGST Act 2017.

Involved Parties / Authorities:

  • Assistant Commissioner, Koyambedu (issuing authority)
  • GST Department, Tamil Nadu
  • SEBI (regulatory compliance)
  • National Stock Exchange of India Limited
  • BSE Limited

Date / Timeline of Event:

  • 27th May 2026: Initial intimation of show cause notice receipt
  • 23rd June 2026: Order received for period April 2022-March 2023 (amounting to ₹2.06 million, below disclosure threshold)
  • 26th June 2026: Order received for period April 2023-March 2024 (main order)
  • 26th June 2026: Disclosure filed with exchanges

Brief Description of Outcome / Dispute:

The Assistant Commissioner (Appeals) held that the company has no excessive input tax credit availment and has correctly availed eligible input tax credit for the periods April 2022 to March 2023 and April 2023 to March 2024. Accordingly, the demand of ₹977.06 million stands completely dismissed.

Impact of Outcome:

Financial Impact:
  • Complete dismissal of ₹977.06 million GST demand
  • No penalty or compensation payable by the company
  • Positive impact on FY2023 and FY2024 financial positions as potential liability is eliminated
  • The earlier order for ₹2.06 million for April 2022-March 2023 period was received but was below materiality threshold for disclosure
Operational / Business / Strategic Impact:
  • Resolution of significant GST dispute removes regulatory overhang
  • Validates company's tax compliance practices and input tax credit availing methodology
  • No operational disruptions or business impacts from this proceeding
Other Implications:
  • Positive precedent for company's tax positions
  • Enhances regulatory compliance credibility
  • No reputational damage from unfavorable outcome

Next Steps / Required Actions:

No further actions required as the matter has been favorably resolved and closed. The order is final unless appealed by the tax authorities.