Sasken Technologies to Appeal ₹38.65 Lakh GST Demand and Penalty

Sasken Technologies has been issued an Order-in-Original by the GST & Central Excise department, demanding ₹19.23 lakh in taxes and ₹19.42 lakh in penalties. This order, dated March 27, 2026, covers the period from April 2019 to March 2024.

What Happened

Sasken Technologies Limited announced it received an Order-in-Original from the GST & Central Excise department. The order pertains to tax liabilities and penalties for the fiscal period spanning April 2019 through March 2024. The total tax demand is ₹19.23 lakh, broken down into ₹13.91 lakh for an excess refund claim, ₹5.11 lakh for not reversing input tax credit (ITC) on credit notes, and ₹0.21 lakh for claiming excess ITC. Additionally, a penalty of ₹19.42 lakh has been imposed. The company plans to appeal this order to the Commissioner of Appeals.

Why It Matters

This situation shows ongoing tax compliance issues for Sasken Technologies. Although the current ₹38.65 lakh demand and penalty are modest relative to the company's size, it adds to recent tax scrutiny. Successfully appealing is important, as losing could mean paying the full amount, which would affect its finances. Pursuing these appeals also means incurring legal and administrative costs.

Background

Sasken Technologies, which provides product engineering and digital transformation services, has faced several tax and regulatory matters recently. In March 2026, the company paid a ₹11.28 lakh fine plus GST to the BSE and NSE for alleged breaches of listing regulations, though it contested the process. Earlier in March 2026, it received a ₹2.68 lakh plus GST fine for similar alleged lapses. In November 2025, Sasken was fined ₹8.82 lakh for not meeting board composition rules. The company is also contesting a substantial ₹8.15 crore Income Tax demand issued on March 24, 2026, for Assessment Year 2017-18. Additionally, Sasken has faced earlier GST demands, including ₹10.89 crore for FY2021-22 and ₹13.59 crore for FY2020-2021, both concerning import turnover and input tax credit issues, for which it also planned to appeal.

Next Steps

• Sasken Technologies will begin its formal appeal process with the Commissioner of Appeals.
• Resources will be needed for legal and administrative expenses related to the appeal.
• Shareholders will closely track the appeal's progress and outcome.
• The ₹38.65 lakh liability is pending the appeal's resolution.

Risks to Monitor

• The main risk is that the appeal could fail, requiring payment of the tax demand and penalty.
• Continuous tax disputes, shown by several recent demands, can shake investor confidence and signal ongoing compliance issues.
• There's a risk of further penalties or interest charges if appeals take a long time or are unsuccessful.

Peer Comparison

Sasken operates in the product engineering and digital transformation sector with peers such as Tata Elxsi, KPIT Technologies, Persistent Systems, and Cyient. While these companies also navigate complex regulations, Sasken's recent record of significant tax demands and multiple penalties for listing non-compliance stands out, showing a different pattern in their regulatory challenges.

Key Figures

• Sasken Technologies' tax demand for April 2019–March 2024 is ₹19.23 lakh.
• A ₹19.42 lakh penalty was imposed for the same period.
• The total financial exposure from this GST order is ₹38.65 lakh.

What to Watch

• The timeline and progress of Sasken's appeal with the Commissioner of Appeals.
• Any new communications or orders from the GST & Central Excise department.
• Sasken's financial provisions or disclosures regarding this pending liability.
• The outcome of other ongoing tax cases, including the ₹8.15 crore Income Tax demand.