Everest Industries Receives GST Show Cause Notice for ₹3.89 Crore
Everest Industries received a GST show cause notice for ₹3.89 crore for FY20-21. The notice relates to interest, credit notes, and input tax credit issues. The company believes it has strong grounds to defend its case and anticipates no material financial impact.
While the company believes there will be no material financial impact, a show cause notice for a significant amount (₹3.89 crore) could potentially affect operations or require substantial legal defense, warranting a medium impact assessment.
The company has received a show cause notice from the GST department, indicating a potential financial liability and legal dispute.
Everest Industries Limited has received a show cause notice (DRC-01) from the Deputy Commissioner of State Tax, CT & GST Circle, Balasore, Odisha, under Section 74 of the CGST Act, 2017 & OGST Act, 2017. The notice, dated August 31, 2026, concerns alleged discrepancies for the financial year 2020-21.
The primary concerns raised by the GST Department include the discharge of CGST & SGST liabilities without due interest, issuance of credit notes beyond the time limit, receipt of credit notes for inward supplies leading to reduction of Input Tax Credit (ITC), availed blocked credit under Section 17(5), disallowance of Input Tax Credit due to contravention of Section 16(2)(c), and liabilities under Reverse Charge Mechanism (RCM) transactions.
The total demand raised amounts to ₹3,89,21,097, comprising tax of ₹1,30,83,256, interest of ₹1,27,54,585, and penalty of ₹1,30,83,256. The company, however, believes it has strong legal and factual grounds to defend its case and is preparing a response to the notice. Everest Industries Limited does not anticipate a material financial impact at this stage, as they are confident that the potential demand will not materialize into a liability.
A plain-language summary of a public exchange filing by Everest Industries Limited. Read the original for the full detail.