Everest Industries Faces ₹3.66 Crore GST Demand, Company Confident in Defense

1 min read     Updated on 30 Sept 2025, 11:23 AM
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Jubin VergheseScanX News Team
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Overview

Everest Industries Limited received a show cause notice from the GST Department in Jabalpur, Madhya Pradesh, proposing to recover ₹3.66 crore for excess Input Tax Credit claimed in FY 2019-20. The demand includes ₹1.19 crore in tax, ₹1.28 crore in interest, and ₹1.19 crore in penalties. The company asserts strong legal and factual grounds to defend the case, expecting no material financial impact. Everest Industries is preparing a comprehensive response and has informed stock exchanges as per SEBI regulations.

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*this image is generated using AI for illustrative purposes only.

Everest Industries Limited , a prominent player in the building solutions sector, has received a show cause notice from the GST Department in Jabalpur, Madhya Pradesh, regarding excess Input Tax Credit (ITC) claimed for the financial year 2019-20. The notice, which proposes to recover ₹3.66 crore, has prompted the company to prepare a robust defense, asserting its strong legal and factual grounds.

Details of the GST Demand

The show cause notice, issued under Section 74 of the Central GST Act, 2017, SGST Act, 2017, and IGST Act, 2017, outlines the following proposed recovery:

Component Amount (in ₹)
Tax Demand 1,18,74,263
Interest 1,28,32,920
Penalty 1,18,74,263
Total 3,65,81,446

The crux of the issue lies in the alleged discrepancy between the ITC claimed in GSTR 3B compared to GSTR 2A/2B for the financial year 2019-20.

Company's Stance and Response

Everest Industries maintains a confident outlook regarding the matter. In an official statement, the company expressed:

  1. Strong legal and factual grounds to defend the case
  2. No expectation of material financial impact
  3. Belief that the potential demand is unlikely to materialize as a liability

The company is currently in the process of preparing a comprehensive response to the show cause notice. Everest Industries' management appears resolute in its stance, indicating their readiness to present and defend their case before the relevant authorities.

Regulatory Compliance

In adherence to regulatory requirements, Everest Industries has duly informed the stock exchanges about this development. The company filed the intimation under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency with its stakeholders.

Market Implications

While the GST demand is significant, the company's confident stance and the nature of the notice being at an initial stage suggest that immediate market reactions may be limited. Investors and stakeholders will likely keep a close watch on how this situation unfolds and its potential impact on the company's financials in the coming quarters.

As the matter progresses, Everest Industries' ability to successfully defend its position and resolve the issue will be crucial in maintaining investor confidence and financial stability.

Historical Stock Returns for Everest Industries

1 Day5 Days1 Month6 Months1 Year5 Years
+4.60%+5.09%+6.82%+58.81%-29.28%+249.54%
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Everest Industries Faces Rs 1.73 Crore GST Demand, Company Prepared to Contest

1 min read     Updated on 23 Sept 2025, 04:44 PM
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Reviewed by
Radhika SahaniScanX News Team
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Overview

Everest Industries Limited has received a show cause notice from the Assistant Commissioner of Central Goods and Service Tax, Roorkee, proposing a tax recovery of Rs 1.73 crore for the financial year 2021-22. The notice cites discrepancies in Input Tax Credit claims and tax reporting. The company believes it has strong grounds to contest the notice and states it will not have a material impact on its operations. Everest Industries is reviewing the matter and plans to take necessary actions in accordance with applicable laws.

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*this image is generated using AI for illustrative purposes only.

Everest Industries Limited , a prominent player in the building solutions sector, has received a show cause notice from the Assistant Commissioner of Central Goods and Service Tax, Roorkee, raising concerns over the company's GST compliance for the financial year 2021-22. The notice, which proposes a tax recovery of Rs 1.73 crore, highlights discrepancies in Input Tax Credit (ITC) claims and tax amounts reported.

Key Points of the GST Notice

The show cause notice, issued under section 73 of the Central GST Act, 2017, SGST Act, 2017, and IGST Act, 2017, outlines several issues:

  1. Excess Input Tax Credit claimed in GSTR 3B compared to GSTR 2A
  2. Differences in tax amounts reported in GSTR 1 and Outward E-Way Bill
  3. ITC taken on invoices from suppliers who have not filed their GSTR 3B returns

Proposed Tax Recovery

The GST Department has proposed to recover a total of Rs 1.73 crore, broken down as follows:

Tax Component Amount (in Rs)
IGST 1,44,04,576
CGST 14,51,569
SGST 14,51,569
Total 1,73,07,714

Company's Response

Everest Industries has stated that the show cause notice does not have any material impact on its financial, operational, or other activities. The company believes it has strong legal and factual grounds to contest the notice and is prepared to address any future proceedings initiated by the authorities.

In an official statement, the company said, "We are in the process of reviewing the matter and will take necessary actions in accordance with applicable laws."

Regulatory Compliance

In compliance with SEBI regulations, Everest Industries has duly informed the stock exchanges about the receipt of the show cause notice. The company received the notice on September 22, 2025, at 16:40 hrs (IST) and made the disclosure the following day.

Everest Industries Limited, with its registered office in Nashik, Maharashtra, continues to maintain its stance on the strength of its position. As the situation develops, stakeholders will be watching closely to see how this tax dispute unfolds and its potential implications for the company's financial statements in the coming quarters.

Historical Stock Returns for Everest Industries

1 Day5 Days1 Month6 Months1 Year5 Years
+4.60%+5.09%+6.82%+58.81%-29.28%+249.54%
Everest Industries
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