Everest Industries Receives Show Cause Notice from GST Department Over Tax Demand of Rs 1.35 Crore
Everest Industries Limited has received a Show Cause Notice (SCN) from the Assistant Commissioner of Central Goods and Service Tax, Kurukshetra, Haryana, concerning alleged discrepancies in tax compliance. The department has raised a tax demand totaling Rs 1,35,68,692/- spanning the financial years 2020-21 to 2023-24.The GST Department's objections relate to several specific areas of taxation under Section 74 of the CGST & HGST Act, 2017 and Section 20 of IGST Act, 2017. These concerns include the wrong availment of ineligible Input Tax Credit (ITC), the use of ineligible ITC regarding hotel and accommodation expenses, and short-payment of GST under Reverse Charge Mechanism (RCM) on Freight Services and Security Services.
The company stated that it maintains strong legal and factual grounds in this matter and is preparing a formal response to the Show Cause Notice. Management noted that there is no material impact on the financial operations or other activities of Everest Industries Limited.
A detailed breakdown of the GST dispute, including the opposing party and the quantum of the claim, is provided below:
| Particulars | Details |
|---|---|
| Opposing Party | The Central Goods and Services Tax (CGST) Department, Government of India |
| Agency/Tribunal | Assistant Commissioner of Central Goods and Service Tax, Audit Circle-2, Kurukshetra, Haryana |
| Dispute Duration | Financial Years 2020-21 to 2023-24 |
| Quantum of Claim | Rs 1,35,68,692/- |
Regarding the financial implications, Everest Industries Limited stated that since this is only an SCN at this stage, and given the company's belief in its factual basis, there is no expected material financial impact. The company confirmed it does not consider it likely that the potential demand will materialize as a liability against the company.
EVERESTIND Stock Price Movement
On Friday, Everest Industries Limited shares rallied to close at ₹524.25, registering a significant 4.99% gain in the session. The stock closed amidst solid trading activity, with 37,815 shares being transacted on the day.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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