Gopal Snacks Limited has received a show cause notice from the Additional Commissioner, CGST HQ, Rajkot, regarding the alleged misclassification of HSN codes for its product 'Fried Fryms' during FY 2022-23. The notice, bearing number 27/HQ/RJT-II/ADC/2026-27, was issued under Section 73(3) of the CGST Act, 2017, and advises the company to pay a differential GST liability of ₹16,55,65,440.

The company disclosed that it has already filed writ petitions before the Hon'ble High Court of Gujarat against similar notices for the periods FY 2017-18 to FY 2021-22. It has secured a stay on those proceedings, which will remain in effect until the court decides the matter. Gopal Snacks stated it intends to file a reply or submissions to challenge the current notice and seek similar protection from the court.

Management confirmed that the receipt of this intimation does not have any material impact on the financial, operational, or other activities of the company. The entity further assured the stock exchanges that it would update them on any material developments in this matter in the future.

The disclosure was made to the exchanges in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The notice was received by the company on June 4, 2026.

Details of the Show Cause Notice

Gopal Snacks promoters held 81.46% of the total equity shares, amounting to 10,15,35,692 shares, as on March 31, 2026. Bipinbhai Vithalbhai Hadvani, filing on behalf of the promoter group, confirmed the shareholding structure in a disclosure submitted to the stock exchanges. The filing is in compliance with Regulation 31(4) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Bipinbhai Vithalbhai Hadvani disclosed that 1,21,20,000 shares, representing 9.72% of the equity, were pledged by him during the financial year. Apart from this specific encumbrance, the promoter group confirmed that no other shares were pledged directly or indirectly during FY26. The total promoter holding remains concentrated among key family members and group entities.

Promoter Shareholding Breakdown

The shareholding is distributed among the promoter and promoter group, with Bipinbhai Vithalbhai Hadvani holding the majority stake. Gopal Agriproducts Private Limited and Raj Bipinbhai Hadvani are the other significant holders within the group. Several entities listed in the promoter group, including Gopal Snacks Foundation and Gopal Foundation, held zero shares as of the reporting date.

The disclosure also noted an exemption granted by SEBI regarding Prafulchandra Vitthal Hadvani. SEBI had granted an exemption via a letter dated October 25, 2023, from considering Prafulchandra Vitthal Hadvani and certain associated entities as members of the promoter group. This exemption was sought under Regulation 300(1)(c) of the SEBI ICDR Regulations.