Everest Industries Limited has informed the Exchange about the receipt of Show Cause Notice from GST Department
EVERESTIND · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
On the reaction day the stock moved 2.1 pts less than Nifty Microcap 250 and 1.5 pts less than its Other Construction Materials peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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Everest Industries has received a Show Cause Notice (DRC 01) from the Deputy Commissioner of State GST, Balasore, for the financial year 2021-22, raising a total tax demand of about ₹56.06 crore (₹27.74 crore CGST + ₹27.74 crore SGST + ₹58.36 lakh IGST). The main objections relate to non-reversal of Input Tax Credit on credit notes, non-reversal of ITC where supplier payments were not made within 180 days, non-submission of documents for scrap sales, and ITC reversal details not being furnished by recipients. The company argues the demand is incorrectly calculated because outstanding vendor balances were aggregated across all plants instead of being limited to the specific plant covered by this notice. Management states there is no material impact on financials or operations and that it has strong legal grounds to contest the notice.
A ₹56 crore tax demand is meaningful relative to the size of the company, but since it is only a show cause notice and not a final order, the actual cash outflow remains uncertain. Investors should track the adjudication outcome — a loss could pressure earnings, while a favourable ruling would remove this overhang. Near-term share price reaction may be muted given the company's reassurance.