Everest Industries Limited Receives Show Cause Notice from GST Department Over Tax Demand for FY 2022-23
Everest Industries Limited has received a Show Cause Notice (SCN) from the Assistant Commissioner of State Tax, CT & GST Circle in Balasore, Odisha. The notice pertains to the financial year 2022-23 and raises several concerns regarding the company's Goods and Services Tax (GST) compliance.The tax department has raised objections across multiple areas concerning the GST filings and transactions. These concerns include short payment of GST due to overstating turnover adjustment in Form GSTR-9C, and the non-permissibility of reducing tax liability when issuing a breakage credit note. Other specific points noted by the Department are the non-fulfillment of Conditions prescribed under Section 15(3)(b) of the CGST Act for claiming tax liability reduction through Credit Notes for Turnover Discounts, excess Input Tax Credit (ITC) claimed compared to ITC available in GSTR 2B, and ineligible ITC claimed on Blocked Credits under Section 17(5) of the CGST Act.
The GST Department has raised a total demand of Rs. 3,17,49,077/- for the financial year 2022-23 under Section 73 of the CGST & OGST Act, 2017. The breakdown of this demand includes Tax, Interest, and Penalty components.
Details regarding the quantum of the claim are presented below:
| Category | Amount |
|---|---|
| Total Demand (SCN) | Rs. 3,17,49,077/- |
| Tax Component | Rs. 1,87,60,756/- |
| Interest Component | Rs. 1,11,02,255/- |
| Penalty Component | Rs. 18,86,066/- |
While the GST Department has issued the SCN for the stated tax demand, Everest Industries Limited reports that there is no expected material financial impact at this stage. The company stated that it firmly believes it maintains strong legal and factual grounds regarding the matter and is currently preparing a response to the Show Cause Notice.
EVERESTIND Stock Price Movement
Shares of Everest Industries Limited are gaining as of 12:41 PM today, trading up by 1.15% and currently hovering at ₹468.15 per share.The equity sees active intraday participation, having been traded 4,589 shares in the live market session.
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