Sapphire Foods Receives Tax Demands Worth Over ₹270 Million

Sapphire Foods India Ltd. on Thursday said it has received tax demand notices from authorities in Ranchi, Jharkhand, and Rohtak, Haryana, related to previous assessment years.

The company received an order on Tuesday from the Commissioner of Income Tax (Appeals), Ranchi, for assessment year 2016–17, demanding ₹170.41 million, including interest of ₹39.12 million. The demand pertains to non-deduction of tax deducted at source (TDS) on year-end provisions, the company said in an exchange filing.

Separately, Sapphire Foods received a show-cause cum demand notice of ₹101.62 million from the Additional Commissioner of Central Goods & Services Tax, Rohtak, for the period from April 2018 to March 2022. The notice alleges excess input tax credit (ITC) availed over GSTR-2A reconciliation and incorrect utilisation of ITC against outward supply GST liability.

Sapphire Foods said it believes the claims are not maintainable and that there is no material impact on its financial, operational, or other business activities. The company is evaluating the notices and will take appropriate steps to respond.