Vishal Mega Mart Limited has informed stock exchanges about a significant tax demand received by its subsidiary company from income tax authorities. The disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, on March 31, 2026.

Tax Authority Order Details

Airplaza Retail Holdings Private Limited, a subsidiary of Vishal Mega Mart, received an order from the Office of the Assistant Commissioner of Income Tax, TDS Circle 1(1) Chennai on March 30, 2026. The order was passed under Section 201 & 201(1A) of the Income Tax Act, 1961, relating to alleged violations in Tax Deducted at Source (TDS) compliance.

Financial Impact and Demand Breakdown

The income tax order has resulted in a total demand of ₹3,28,86,743 against the subsidiary company. This amount comprises two components - the principal tax demand and interest charges for the alleged non-compliance.

Nature of Alleged Violations

The order pertains to alleged non-deduction of TDS and non-payment of interest on TDS for Financial Year 2019-20. The income tax authorities have contended that Airplaza Retail Holdings Private Limited failed to comply with TDS provisions, resulting in the demand for both the principal amount and interest charges.

Company Response and Next Steps

Vishal Mega Mart has stated that the subsidiary company is currently reviewing the order and evaluating next steps. The company has indicated that there is no further material impact on financial, operations or other activities due to this order.

The disclosure was signed by Rahul Luthra, Company Secretary & Compliance Officer, and communicated to both NSE and BSE as per regulatory requirements under SEBI listing regulations.

Vishal Mega Mart Limited has received a tax order from Karnataka GST authorities alleging excess Input Tax Credit utilization for the Financial Year 2019-20. The company disclosed this development on March 24, 2026, in compliance with SEBI listing regulations.

Order Details and Financial Impact

The Assistant Commissioner, LGSTO 38-Bengaluru, DGSTO-5, Bengaluru, Karnataka passed the order under Section 74 of the CGST Act, 2017. The order specifically targets alleged excess Input Tax Credit availed and utilized by the company during FY 2019-20.

Company's Response and Assessment

Vishal Mega Mart Limited stated that the financial impact is limited to the tax demand, interest, and penalty imposed under the order. The company emphasized that there is no material impact on its operations or other business activities due to this order.

The company is currently reviewing the order received from the Karnataka GST authorities and evaluating its next course of action. This suggests that the company may consider filing an appeal or taking other legal remedies available under the GST framework.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 read with Sub-para 20 of Para A of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Company Secretary and Compliance Officer Rahul Luthra signed the disclosure document, ensuring compliance with stock exchange notification requirements.

The company has informed both the National Stock Exchange of India Limited and BSE Limited about this development, maintaining transparency with stakeholders and regulatory authorities regarding the tax order and its potential financial implications.