Everest Industries Limited has received a show cause notice (DRC-01) from the Goods and Services Tax (GST) Department seeking a tax demand of ₹1,35,68,692. The notice, issued by the Assistant Commissioner of Central Goods and Service Tax in Kurukshetra, Haryana, on July 24, 2026, alleges wrong availment of ineligible input tax credit (ITC) and short-payment of GST under the Reverse Charge Mechanism (RCM). The company disclosed that it firmly believes in its legal grounds and expects no material impact on its financials or operations.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The notice was served under Section 74 of the CGST Act, 2017, Section 74 of the HGST Act, 2017, and Section 20 of the IGST Act, 2017. Everest Industries confirmed receipt of the notice at 18:23 hrs IST on July 24, 2026, and is currently preparing a response.

Key Allegations in the Notice

The GST Department raised objections concerning transactions spanning financial years 2020-21 to 2023-24. The primary concerns cited in the show cause notice include:

The total quantum of the claim raised is ₹1,35,68,692. This figure represents the tax demand alleged by the department; however, as this is only a preliminary show cause notice, no final liability has been established.

Company Response and Financial Impact

Everest Industries stated that it maintains strong legal and factual grounds to contest the demand. The company emphasized that it will take all necessary actions to present and defend its case before the relevant authorities. Management does not consider it likely that the potential demand will materialize as a claim against the company or result in a liability. Consequently, the firm reported no expected material financial implications, including compensation or penalties, at this stage.

What the Numbers Show

The notice covers a four-year period (FY21 to FY24), suggesting a retrospective audit focus on compliance mechanisms rather than a single transactional error. The allegations center on procedural compliance—specifically the eligibility of input credits and the correct application of reverse charge mechanisms on service inputs like freight and security. Since the company has not provisioned for this amount, citing low likelihood of materialization, the immediate balance sheet impact remains neutral. However, the resolution timeline depends on the company’s response and subsequent hearings with the Kurukshetra tax authorities.

Everest Industries has appointed Dr. Ujjal Bhattacharjee as its Chief Human Resources Officer (CHRO) effective July 16, 2026. The appointment strengthens the company's senior management team as it focuses on aligning people strategy with business growth and operational excellence.

Dr. Bhattacharjee holds a Ph.D. in Management from Bharati Vidyapeeth University and a Master of Personnel Management from Pune University. His educational background also includes a Bachelor of Science in Chemistry Honors from Ranchi University and a Bachelor of Laws from Pune University. He has completed a Global Advanced Managed Program from ISB-Kellogg, Northwestern University, and holds certifications in 360-degree feedback, MBTI, and Predictive Index from institutions in the UK and Hong Kong.

With over 25 years of experience, Dr. Bhattacharjee has worked in the manufacturing, engineering, and automotive sectors across listed and private companies. His previous roles include Director HR India & Southeast Asia at Foseco India Limited, HR Director & VP Operations India at GKN Sinter Metals India, and Vice President HR at Fresenius Kabi India. Most recently, he served as Group Chief Human Resources Officer at Biorad Medisys.

Key Professional Details

Dr. Bhattacharjee's expertise spans organizational transformation, culture building, talent strategy, mergers and acquisitions, and digital HR transformation. He has also led initiatives in setting up Global Capability Centres and Greenfield projects. His leadership experience covers India, South Asia, and South Africa.