Everest Industries gets ₹13.34 Cr GST notice for FY23
- Everest Industries received a GST show cause notice for FY23
- Total demand amount stands at ₹13.34 crore including interest and penalty
- Disputes center on excess ITC claims and short liability declarations
*this image is generated using AI for illustrative purposes only.
Everest Industries Limited has received a show cause notice from the Goods and Services Tax (GST) department demanding ₹13.34 crore in tax, interest, and penalty for the financial year 2022-23.
The notice was issued by the Deputy Commissioner of State Tax, Ambad_502, Nashik, Maharashtra, on September 24, 2026. The regulatory filing cites discrepancies in Input Tax Credit (ITC) claims and liability declarations under Section 73(1) of the CGST Act, 2017, and MGST Act, 2017.
Nature of the Dispute
The GST department raised objections regarding three primary areas of non-compliance identified during their review of the company's filings for FY23:
- Excess ITC availed in GSTR-3B compared to amounts available in GSTR-2B and GSTR-2A.
- Short liability declared in GSTR-3B and GSTR-9 relative to liability shown in GSTR-1.
- Outward tax liability discharge in GSTR-3B and GSTR-9 being less than the liability per generated E-way bills.
The total demand comprises tax, interest, and penalty components as detailed below:
| Component | Amount |
|---|---|
| Tax | ₹7.32 crore |
| Interest | ₹5.29 crore |
| Penalty | ₹0.73 crore |
| Total Demand | ₹13.34 crore |
Company Response and Financial Impact
The company stated that it maintains strong legal and factual grounds regarding the matter. Everest Industries is currently preparing a response to defend its position before the relevant authorities.
The management asserted that there is no expected material financial impact at this stage. The company does not consider it likely that this potential demand will materialize as a claim resulting in a final liability. The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Historical Stock Returns for Everest Industries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.26% | +6.58% | +1.40% | +37.43% | -40.80% | -3.58% |
How might the resolution of this GST dispute influence Everest Industries' credit rating and borrowing costs in the near term?
What are the potential cascading effects on the company's working capital cycle if a significant portion of the ₹13.34 crore demand is upheld?
Will this regulatory scrutiny prompt Everest Industries to overhaul its internal tax compliance and ITC reconciliation processes to prevent future discrepancies?
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