Everest Industries Faces ₹3.66 Crore GST Demand, Company Confident in Defense
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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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:
- Strong legal and factual grounds to defend the case
- No expectation of material financial impact
- 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 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
+4.60% | +5.09% | +6.82% | +58.81% | -29.28% | +249.54% |