Sapphire Foods receives ₹20 crore GST show-cause notice from Karnataka authorities; stock to watch

Sapphire Foods shares are set to be in the focus of investors on Monday, September 28, as the company received a goods and services tax (GST) show-cause notice from the Deputy Commissioner, Karnataka.

In an exchange filing on Saturday, September 26, Sapphire Foods disclosed that the Karnataka authorities have issued a GST show-cause notice, demanding ₹19.99 crore for alleged incorrect availment and utilisation of input tax credit (ITC) and short payment of tax for the period April 2022 to March 2023.

“This is to inform you that the Company has received a show-cause notice from Deputy Commissioner, DGSTO-4, Bengaluru, Karnataka,” the company informed the stock exchanges.

In response to the notice, Sapphire Foods said that the company is evaluating the demand and will take the necessary steps to respond to the notice.

“The claim made by the authority is not maintainable. There is no material impact on the financial, operational, or other activities of the company due to the issuance of this notice,” as per the official statement.

Last week, on September 22, the company received two notices amounting to a total tax demand of ₹538 crore for alleged inadvertent availment and utilisation of ITC, short payment of interest and tax.

NSE data showed that Sapphire Foods shares ended 0.9% lower at ₹223.61 apiece after Friday’s market session, in comparison to ₹225.70 apiece at the previous equity market close.

How has Sapphire Foods stock performed?

NSE data showed that Sapphire Foods shares have declined by more than 23% in the last three years, and by over 17% of its value in the past one-year period.

On a year-to-date (YTD) basis, the company’s stock has lost 15% of its value so far in 2026, and has dropped 10.7% in the last one-month period. The exchange data also showed Sapphire Foods shares have lost 3% in the last five market sessions.

Shares of Sapphire Foods hit their 52-week high of ₹313 apiece on September 25, 2025, while the 52-week low was at ₹139.91 apiece on April 2, 2026.

The company’s market capitalisation (m-cap) was at ₹7,186 crore as of the stock market close on Friday, September 25, 2026.