Sasken Technologies Limited has received orders from the Joint Commissioner Appeals-5 dismissing its appeals for the fiscal years 2017-18 and 2018-19, resulting in confirmed GST demands totaling Rs 45.29 crore. The company disclosed this information in a regulatory filing under SEBI's Listing Obligations and Disclosure Requirements (LODR) regulations.

Details of the GST Demands

The orders, received by Sasken Technologies on December 5, 2025, pertain to alleged violations related to reverse charge on payments made to overseas branches. The breakdown of the demands is as follows:

Alleged Violations

For FY 2017-18, the alleged violation pertains to GST payable under reverse charge on payments made to overseas branches by the company's headquarters. The FY 2018-19 order cites similar issues along with a mismatch between GSTR-2A and GSTR-3B forms.

Company's Stance and Next Steps

Sasken Technologies has stated that there is no material impact on its financial or operational activities due to the dismissal of these appeals. The company plans to exercise its right to appeal before the Goods and Services Tax Appellate Tribunal (GSTAT).

Implications for Investors

While the company asserts no material financial impact, investors should note the significant amount involved in the GST demands. The outcome of further appeals could potentially affect the company's financial position in the future.

Sasken Technologies continues to maintain its stance on the disputed tax matters and is pursuing legal remedies available under the GST laws. Shareholders and potential investors are advised to monitor further developments in this ongoing tax litigation.

Sasken Technologies Limited has been hit with fines totaling Rs 8.82 lakh by India's two major stock exchanges for alleged non-compliance with board composition regulations. The company, however, disputes these allegations and plans to seek withdrawal of the penalties.

Regulatory Action

The Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE) have each imposed a fine of Rs 4.41 lakh (excluding GST) on Sasken Technologies. The penalties are related to alleged non-compliance with Regulations 17(1) and 20(2)/(2A) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Alleged Non-Compliance

The fines pertain to the composition of the company's Board of Directors and the Stakeholders Relationship Committee. Regulations 17(1) and 20(2)/(2A) set forth requirements for the structure and membership of these corporate bodies.

Company's Response

Sasken Technologies has stated that it will contest the fines. The company asserts that the composition of its Board and the Stakeholders Relationship Committee has consistently met the requirements set forth under the relevant regulations.

In a statement, the company declared, "We wish to inform that the composition of the Board and the Stakeholders Relationship Committee has consistently met the requirements set forth under Regulation 17(1) and 20(2)/(2A) of the Listing Regulations."

Next Steps

The company has announced its intention to file an application for the withdrawal of the imposed fines. This move underscores Sasken Technologies' confidence in its compliance with the regulatory requirements.

Impact on Operations

Sasken Technologies has stated that the fines will not have any impact on its financial or operational activities, beyond the monetary value of the penalties themselves.

Investors and stakeholders will likely be watching closely as Sasken Technologies navigates this regulatory challenge. The outcome of the company's application for withdrawal of fines could have implications for its corporate governance perception in the market.