Vishal Fabrics GST demand determined as zero in final order

Vishal Fabrics received a final order from the Office of the Commissioner (Appeals) Central GST, Appeal Commissionerate, Ahmedabad, on July 6, 2026, determining the demand as zero. This decision resolves the matter where the company had previously received orders imposing significant penalties under the CGST and Gujarat GST Acts. The final order concludes the proceedings initiated by the tax authority.

The company had initially received an order on December 31, 2025, imposing a penalty of ₹24,26,74,876 under Section 74(9) of the CGST/Gujarat GST Act, 2017, read with Section 20 of the IGST Act, 2017, and Section 11 of the GST (Compensation to States) Act, 2017. Subsequently, a rectification order was issued revising the penalty to ₹21,35,65,819. The final order from the appellate authority has now set the demand to zero.

Based on the company's assessment, prevailing law, and advice from counsel, the company believes there will be no material financial impact resulting from this order. The intimation was submitted to BSE Limited pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key Details of the Order

Sr. No.	Details of Events	Information
1.	Name of the authority	Office of the Commissioner (Appeals) Central GST, Appeal Commissionerate, Ahmedabad
2.	Nature of action	Final order determining demand as zero
3.	Date of receipt	06-07-2026
4.	Impact on financial activities	No material financial impact

The company's board and management have taken the order on record, confirming that the matter is closed without any financial liability.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.15%	-1.54%	-2.36%	-17.16%	-46.26%	-30.92%

Vishal Fabrics disclosed that its promoters, Vedprakash Devkinandan Chiripal and Savitridevi V Chiripal, have been restrained from accessing the securities market for a period of four years by the Securities and Exchange Board of India (SEBI). The final order, dated June 30, 2026, also imposes a monetary penalty of ₹5,00,000 on each promoter. The company stated that based on its assessment and legal advice, this order is not expected to have any material financial or operational impact on its business.

Regulatory Action and Penalties

The SEBI passed the final order against 226 entities, including the promoter group of Vishal Fabrics . The action was taken under Sections 11(1), 11(4), 11(4A), 11B (1), and 11B (2) of the SEBI Act, 1992. The promoters were officially notified of the order on July 1, 2026.

The penalties prohibit the promoters from buying, selling, or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner during the ban period.

Sr. No.	Parameter	Details
1.	Authority	Securities and Exchange Board of India
2.	Penalty Amount	₹5,00,000 each
3.	Market Ban Duration	4 years
4.	Order Date	June 30, 2026
5.	Receipt Date	July 1, 2026

Company Response and Future Action

Vishal Fabrics clarified that the promoter group reserves the right to appeal against the SEBI order. Under Section 15T and 15Z of the SEBI Act, 1992, the promoters may approach the Securities Appellate Tribunal (SAT) and the Supreme Court of India respectively. The company confirmed that there are no other material disclosures related to this event.