Gopal Snacks Limited has received significant relief from GST authorities regarding a substantial tax liability that was under scrutiny. The company announced that it has successfully resolved all proposed GST demands for the financial year 2021-22.

GST Liability Resolution

Gopal Snacks Limited received a Form GST DRC-07 notice, which confirmed that the proposed GST demand of ₹7.97 crores for FY 2021-22 has been dropped. The notice stated that no tax, interest, or penalty is payable after successful reconciliation.

Background and Timeline

This development follows an earlier communication where the company had informed stock exchanges about receiving a Show Cause Notice in Form GST DRC-01 (Reference No. ZD240925024126J) dated September 9, 2025, issued by the Office of the Assistant Commissioner of State Tax, Unit-27, Modasa, Gujarat.

The proposed liabilities totaling ₹7,97,10,573.00 included differentiate GST liability and excess input tax credit claims. The company has successfully reconciled or discharged all these proposed amounts.

Impact Assessment

According to the company's disclosure, there is no impact on financial, operations, or other activities of the company following this resolution. The successful reconciliation of the entire proposed liability amount eliminates any potential financial burden that could have affected the company's operations.

Regulatory Compliance

The company has made this disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency with stakeholders regarding material developments. The resolution of this GST matter removes a significant regulatory overhang that had been pending since September 2025.

Gopal Snacks has announced a third-party manufacturing agreement for a new production facility in Manendragarh, Chhattisgarh. This development aims to expand the company's manufacturing capabilities and geographical presence.

Manufacturing Facility Details

The new facility focuses on wafer production, with the following specifications:

Strategic Benefits

The establishment of this manufacturing facility is expected to deliver several operational advantages:

• Boost overall operations
• Provide enhanced supply chain flexibility
• Enable better market penetration in the region
• Improve distribution capabilities

Operational Impact

The facility's dedicated capacity of 2,240 metric tonnes per annum for wafer production aims to meet growing market demand. The third-party manufacturing model allows Gopal Snacks to expand its production capabilities without significant capital investment in infrastructure, potentially enabling more efficient resource allocation and operational scalability.

This strategic move is intended to strengthen Gopal Snacks' market position and enhance its ability to respond to consumer demands in the region.