Everest Industries Limited has received updated relief from Central Goods and Service Tax (CGST) authorities regarding a tax dispute that originated from a Show Cause Notice. The company informed stock exchanges on December 24, 2025, about the revised outcome following their response to the notice from the Assistant Commissioner CGST, Division, Roorkee, Uttarakhand.

Significant Reduction in Tax Demand

The CGST authorities in Roorkee issued a revised order on December 23, 2025, at 3:57 p.m. (IST), providing substantial relief to the company. The order resulted in a significant reduction in the tax demand under Section 73(9) of the CGST Act, 2017/UKGST Act, 2017 read with Section 20 of IGST Act, 2017.

Breakdown of Revised Tax Components

The updated tax demand of ₹50.06 lakh comprises three components distributed across different tax categories. The majority of the revised demand falls under IGST at ₹47.80 lakh, while CGST and SGST components account for ₹1.13 lakh each.

Company's Legal Response Strategy

Despite receiving substantial relief with a reduction of ₹1.23 crore in the original tax demand, Everest Industries has indicated its intention to contest the remaining amounts. The company plans to challenge both the residual tax demand of ₹50.06 lakh and the penalty of ₹5.18 lakh through appropriate legal proceedings.

Regulatory Timeline and Compliance

The development follows the company's earlier intimation dated September 23, 2025, when it first informed exchanges about receiving the Show Cause Notice dated September 22, 2025. The company had responded to the SCN and participated in hearings before receiving the final order. This regulatory disclosure was made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The significant reduction in tax demand demonstrates the effectiveness of the company's response to the original notice, though the decision to contest the remaining amounts indicates the company's commitment to defending its position on the matter.

Everest Industries Limited , a key player in the building solutions sector, has experienced a significant setback as Crisil Ratings downgraded its credit ratings on November 25, 2025. This development reflects the company's ongoing financial challenges and slower-than-anticipated business recovery.

Credit Rating Downgrade Details

The total bank loan facilities rated amount to Rs. 440.00 crores.

Reasons for the Downgrade

The downgrade primarily stems from:

1. Weaker than expected recovery in business operations
2. Significant impact on the company's profitability

Financial Performance Analysis

An examination of Everest Industries' balance sheet reveals some interesting trends:

While the company has shown growth in total assets and current assets, the increase in liabilities and modest growth in equity suggest potential financial strain.

Implications for Investors and Stakeholders

1. Increased Borrowing Costs: The downgrade may lead to higher interest rates on future loans, potentially impacting the company's financial flexibility.
2. Investor Confidence: This rating action could affect investor sentiment, possibly leading to increased scrutiny of the company's financial health and recovery strategies.
3. Business Operations: The downgrade reflects challenges in business recovery, which may require management to reassess and potentially restructure certain aspects of operations.

Looking Ahead

Everest Industries will need to focus on improving its business performance and profitability to regain its previous credit standing. Stakeholders should monitor the company's upcoming financial reports and any strategic initiatives announced to address these challenges.

As the building solutions sector navigates through various market pressures, Everest Industries' ability to adapt and improve its financial metrics will be crucial in determining its future credit outlook and market position.