Everest Industries Receives Rs 3.17 Crore GST Show Cause Notice; Company to Contest Allegations:

Everest Industries Limited has informed that it has received a Show Cause Notice (SCN) proposing an aggregate tax demand amounting to Rs 3.17 crore, comprising Rs 1.87 crore as tax, Rs 1.11 crore as interest, and Rs 18.86 lakh as penalty, for the financial year 2022-23.

The notice has been issued by the Assistant Commissioner of State Tax, CT & GST Circle, Balasore, Odisha, under Section 73 of the CGST and OGST Act, 2017, and the company had received the same on August 3, 2026, at 11:42 a.m. (IST).

According to the notice, the department has raised objections over several issues, including alleged short payment of GST due to incorrect turnover adjustments in Form GSTR-9C, reduction of tax liability through breakage credit notes, non-compliance with conditions for claiming tax reduction through discount-related credit notes under Section 15(3)(b) of the CGST Act, excess Input Tax Credit (ITC) claimed compared to GSTR-2B, and availment of blocked ITC under Section 17(5) of the CGST Act.

The company stated that the notice is only a show-cause notice at this stage and does not create a confirmed tax liability. Everest Industries said it has strong legal and factual grounds to contest the allegations and is preparing a detailed response before the concerned GST authorities.

The company also clarified that it does not expect any material financial impact from the notice at present, as it believes the demand is unlikely to result in a final liability after the matter is examined by the authorities.

Everest Industries Limited has made the aforementioned disclosure to the National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE) vide an Intimation dated August 04, 2026, pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.