Seshasayee Paper & Boards Limited has achieved a significant victory in its GST appeal case, with the Commissioner (Appeals) ruling materially in favor of the company and drastically reducing the tax demand. The company disclosed this development to stock exchanges under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Major Reduction in GST Demand

The Commissioner (Appeals) has delivered a favorable verdict that substantially reduces the company's GST liability. The ruling represents a major relief for Seshasayee Paper and Boards Limited in this regulatory matter.

Background of the GST Case

The original tax demand was raised by The Additional Commissioner, Salem CGST Commissionerate through an order dated December 30, 2023. The demand covered multiple financial years and involved specific GST compliance issues.

Key aspects of the original demand:

• Alleged short payment of GST under Reverse Charge Mechanism (RCM)
• Excess claim of Input Tax Credit
• Period covered: Financial years 2017-18 to 2021-22
• Additional interest charges were also applicable

Appeal Process and Outcome

Following the initial demand notice, Seshasayee Paper and Boards Limited filed an appeal with the Commissioner (Appeals) challenging the order. The company had previously informed stock exchanges about this development through a letter dated January 31, 2024.

The Commissioner (Appeals) has now issued the latest order ruling the case materially in favor of the company. While the order is yet to be uploaded on the GST Portal due to technical challenges, the company has received a physical copy and made the disclosure based on this document.

Regulatory Compliance

The company has fulfilled its disclosure obligations by informing both the National Stock Exchange of India Limited and BSE Limited about this significant development. The disclosure was made through a letter dated January 12, 2026, signed by S Srinivas, Director (Finance) & Secretary.

Stock Exchange Details:

• NSE Scrip Code: SESHAPAPER
• BSE Scrip Code: 502450
• CIN: L21012TZ1960PLC000364

This favorable ruling in the GST appeal case provides substantial financial relief to Seshasayee Paper and Boards Limited, with the total demand and penalty reduced by nearly 98% from the original assessment.

Dhanashree Investments Private Limited has acquired additional equity shares in Seshasayee Paper & Boards Limited through open market purchases, as disclosed under SEBI's substantial acquisition regulations on December 12, 2025.

Latest Transaction Details

The most recent acquisition involved the purchase of 9,276 equity shares of face value ₹2.00 each, representing 0.015% of the company's total share capital. The transaction was executed on the National Stock Exchange (NSE) at a price of ₹238.46 per share on December 12, 2025.

Updated Shareholding Pattern

Following this latest acquisition, Dhanashree Investments' shareholding pattern in Seshasayee Paper & Boards has been updated. The investment firm's total holding has increased from its previous position.

Regulatory Compliance

The disclosure was made in accordance with Regulation 29(2) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Dhanashree Investments Private Limited, identified as belonging to the promoter group, communicated this acquisition to both the National Stock Exchange and Bombay Stock Exchange.

Seshasayee Paper & Boards Limited has a total equity share capital of 63,068,140 shares with a face value of ₹2.00 each. The company's shares are listed on both NSE and BSE. The acquisition represents a marginal increase in Dhanashree Investments' stake in the Tamil Nadu-based paper manufacturing company, maintaining its position as a promoter group entity.