EKC Receives GST Order: ₹5.34 Lakh Penalty, ₹43.25 Lakh Interest for FY22 ITC Mismatch
Everest Kanto Cylinder Limited received a GST order dated December 31, 2025. A penalty of ₹5.34 lakh and interest of ₹43.26 lakh were levied for an ITC mismatch of ₹53.40 lakh for FY 2021-2022 due to technical portal errors. The company plans to appeal.
While a penalty and interest have been levied, the company has indicated that the financial implications are expected to be nil as they plan to appeal. The amounts are also relatively small compared to the company's overall financials.
The company has been levied a penalty and interest by the GST authorities, which is a negative development.
Everest Kanto Cylinder Limited (EKC) has received an order under Section 73 of the Goods and Services Tax (GST) Act, 2017, from the Office of the Deputy Commissioner, Lucknow.
The order, dated December 31, 2025, pertains to a mismatch in input tax credit (ITC) for the financial year 2021-2022. The company has been levied a penalty of ₹5,34,046 and interest of ₹43,25,773 on an ITC amount of ₹53,40,460.
According to the company, the ITC mismatch occurred because the relevant bill of entry (BOE) was not reflecting on the GST portal due to technical errors. EKC stated that the expected financial implications on the company are nil, as they intend to file a rectification application and/or appeal within the prescribed time upon reflection of the BOE on the GST portal.
The company has been directed to make the payment by March 31, 2026, failing which proceedings will be initiated to recover the outstanding dues.
What to do with a filing like this
Everest Kanto Cylinder Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. It is a primary document, not a recommendation, and the desk marks it low impact, the band that almost never moves a portfolio on its own.
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See the model portfoliosA plain-language summary of a public exchange filing by Everest Kanto Cylinder Limited. Read the original for the full detail.