Ethos Limited received an order from the GST Appellate Authority, Noida, dismissing its appeal and upholding a combined tax demand and penalty of approximately ₹26.51 lakh for financial years 2018-19 and 2019-20.

The order, received on October 14, 2026, confirms a tax demand of ₹13.26 lakh along with applicable interest and a separate penalty of ₹13.26 lakh under Section 74 of the Central Goods and Services Tax Act, 2017. The dispute relates to input tax credit (ITC) disallowed because corresponding invoices were not reflected in the suppliers' GST returns.

Financial Exposure Details

The company disclosed that the total financial exposure comprises the tax demand and penalty, aggregating to approximately ₹26.51 lakh, plus interest which is yet to be quantified. After adjusting for a pre-deposit of ₹1.33 lakh already paid, the balance exposure stands at approximately ₹25.19 lakh, excluding interest.

Company Response and Next Steps

Ethos Limited stated that it believes it has a good case on merits and is evaluating available legal remedies. The company intends to file a further appeal before the competent appellate authority. In its disclosure under Regulation 30 of the SEBI Listing Regulations, the company asserted that the order does not have any material impact on its financial, operational, or other activities.

What the Numbers Show

The penalty imposed is exactly equal to the tax demand amount (₹13.26 lakh), indicating that the authority applied the maximum permissible penalty rate under Section 74 for the specified period. The net cash outflow risk, excluding unquantified interest, is currently estimated at ₹25.19 lakh after accounting for the initial pre-deposit.

Ethos Ltd has accepted the resignation of Rajesh Pandey from the position of National Sales Head, effective close of business hours on October 5, 2026. The departure was intimated to stock exchanges under SEBI listing regulations.

Resignation details

Mr. Pandey tendered his resignation vide a letter dated October 5, 2026. The stated reason for his exit is to pursue career opportunities outside the company. In his resignation letter addressed to the Managing Director and Chief Executive Officer, he confirmed that there were no material reasons for his resignation other than those stated.

The company stated that Mr. Pandey shall cease to be National Sales Head with effect from the close of business hours on October 5, 2026. He expressed gratitude to the Board of Directors, management team, and colleagues for the support and opportunities extended during his tenure.

Transition and succession

Ethos Ltd is currently in the process of identifying a suitable candidate for the vacant position. The company will inform the stock exchanges in due course upon the appointment of the successor. Mr. Pandey committed to extending all necessary assistance to ensure an orderly transition and handover of responsibilities and records to persons designated by management.

The intimation was filed pursuant to Regulation 30 read with Para A of Part A of Schedule III to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was signed by Priya Grover, Company Secretary and Compliance Officer.