Seshasayee Paper And Boards has secured a major victory in its GST appeal, achieving a remarkable reduction in tax demand that provides substantial financial relief to the company. The successful legal challenge has resulted in significant savings and demonstrates effective tax management strategies.

Appeal Outcome Details

The company's appeal has yielded exceptional results, with the GST demand being drastically reduced. The following table illustrates the substantial impact of the successful appeal:

Financial Impact

The successful appeal represents a significant financial benefit for Seshasayee Paper And Boards , with the company avoiding a substantial tax liability. The reduction from ₹712.24 lakhs to ₹16.00 lakhs translates to savings of ₹696.24 lakhs, which will positively impact the company's cash flow and financial position.

Legal Strategy Success

The dramatic reduction in GST demand highlights the effectiveness of the company's legal approach in challenging the original assessment. This outcome demonstrates the importance of thorough legal review and appropriate appeals processes in tax matters, particularly in complex GST cases where initial assessments may be subject to revision upon detailed examination.

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.