Sapphire Foods India shares are likely to remain in focus after the company received show cause notices from the Tamil Nadu GST authorities involving a cumulative tax demand of Rs 97.71 crore related to alleged excess input tax credit claims.
According to the company’s exchange filing, the notices were issued under Section 73 of the Tamil Nadu SGST Act, 2017, through DRC-01 dated May 26, 2026, by the office of the Assistant Commissioner (ST), Koyambedu Assessment Circle, Chennai.
The notices pertain to two separate assessment periods covering April 2022 to March 2023 and April 2023 to March 2024.
The GST authorities have alleged that Sapphire Foods availed excess input tax credit compared to the amounts reflected in its GSTR-2B returns during the relevant periods under the Tamil Nadu GST regime.
Sapphire Foods stated in its filing that the claims raised by the authorities are “not maintainable.” The company further clarified that it does not expect any material impact on its financials, operations, or other business activities due to the issuance of these notices.
The company said it is currently evaluating the notices and will take appropriate legal and regulatory steps, including filing a detailed response before the tax authorities.
The disclosure was made to both the National Stock Exchange (NSE) and BSE under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.
Sapphire Foods operates major quick service restaurant brands in India and Sri Lanka, including KFC and Pizza Hut franchise operations.
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.