Sasken Technologies received a dismissal order from the Joint Commissioner Appeals, GST Department, Bengaluru, regarding a tax dispute for FY21. The order confirms a total demand of ₹14.44 crore, comprising tax, interest, and penalty.

The dispute stems from GST payable under reverse charge on payments made to overseas branches and mismatches between GSTR-2B and GSTR-3B filings. The authority rejected the company's appeal filed under section 107(1) of the SGST Act, 2017, and CGST Act 2017.

Breakdown of the confirmed demand

The initial demand raised by DCCT Audit 5.9 included tax, interest, and penalty components. However, the final order recalculated the interest amount up to the date of the order, increasing the total liability.

The interest component initially stood at ₹5,36,39,607 but was revised to ₹7,02,60,032 in the appeal order. This recalculation accounts for the difference between the originally stated total demand of ₹12.79 crore and the final figure of ₹14.44 crore.

Company response and next steps

Sasken Technologies stated that the dismissal has no material impact on its financials or operations. The company intends to exercise its right to appeal the order before the Goods and Services Tax Appellate Tribunal (GSTAT).

What the numbers show

The escalation from the initial demand calculation to the final order highlights the impact of time-based interest accruals in tax litigation. The interest component alone constitutes approximately 48.6% of the total confirmed demand, surpassing the principal tax amount. This structure indicates that prolonged legal proceedings significantly inflate the final liability due to compounding interest charges calculated up to the order date.

Sasken Technologies Limited received an order from the Joint Commissioner Appeals, GST Department, Bengaluru, dismissing its appeal regarding a tax demand for FY22. The total confirmed demand stands at ₹10.89 crore.

The order, dated September 21, 2026, was issued under Section 107(1) of the SGST Act, 2017 and CGST Act 2017. The authority confirmed the demand originally raised by DCCT Audit 5.7. The dispute centers on GST payable under reverse charge on sales by overseas branches.

Breakdown of Tax Demand

The dismissed appeal relates to the fiscal year 2021-22. The authorities have upheld the original assessment, breaking down the liability into tax, interest, and penalty components as detailed below:

Company Response and Impact

In its filing to stock exchanges, Sasken Technologies stated that the dismissal of the appeal has no material impact on its financial position. The company further clarified that there is no impact on its operations or other activities resulting from this order.

The intimation was made pursuant to Regulation 30 read with sub-para 20 of Para A of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024.

What the Numbers Show

The interest component of ₹4.44 crore constitutes approximately 40% of the total demand of ₹10.89 crore. This high proportion of interest relative to the base tax amount of ₹5.87 crore suggests a significant duration between the original demand notice and the final appellate order, highlighting the cost of prolonged litigation in indirect tax disputes.