Sasken Technologies loses GST appeal for FY22, faces ₹10.89 crore demand
- Sasken Technologies lost its GST appeal for FY22 with a total demand of ₹10.89 crore
- The Joint Commissioner Appeals in Bengaluru confirmed the demand raised by DCCT Audit 5.7
- The dispute involves GST payable under reverse charge on sales by overseas branches
- Company states there is no material impact on its financials or operations
*this image is generated using AI for illustrative purposes only.
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:
| Component | Amount (₹) |
|---|---|
| Tax | 5,86,88,358 |
| Interest | 4,44,26,283 |
| Penalty | 58,68,836 |
| Total | 10,89,83,477 |
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.
Historical Stock Returns for Sasken Technologies
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.67% | -1.57% | -9.92% | +49.49% | +17.20% | +27.98% |
Will Sasken Technologies pursue further legal remedies, such as an appeal to the High Court or Supreme Court, to challenge the ₹10.89 crore demand?
How might this adverse ruling influence the tax compliance strategies of other Indian IT firms with significant overseas branch operations?
What specific provisions in Sasken's FY22 financial statements were utilized to absorb the potential liability, given the claim of no material impact?
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