Everest Industries Limited has informed the Exchange about the receipt of Show Cause Notice from GST Department
EVERESTIND · price
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Everest Industries has received a Show Cause Notice (DRC 01) from the Deputy Commissioner of State GST, Jabalpur, Madhya Pradesh on September 29, 2025, for financial year 2019-20. The notice alleges excess Input Tax Credit (ITC) claimed in GSTR 3B compared to GSTR 2A/2B returns. The total proposed demand is ₹3.66 crore, comprising tax of ₹1.19 crore, interest of ₹1.28 crore, and penalty of ₹1.19 crore under Section 74 and Section 122 of the CGST/MP GST Act, 2017. The company is preparing a response to the notice and believes it has strong legal and factual grounds to defend itself. It has stated there is no expected material financial impact at this stage.
This is at the show cause notice stage and not a confirmed liability, so the immediate financial impact on shareholders is limited. However, if the demand materializes after adjudication, it could affect the company's financials. The stock may see minor short-term volatility due to tax uncertainty, but the company's confident stance provides some reassurance.