Everest Industries Limited has received a show cause notice from the GST Department regarding excess ITC claimed in GSTR 3B as compared with GSTR 2A/2B. The notice, issued on September 29, 2025, by the Deputy Commissioner of State Goods and Service Tax, Jabalpur, Madhya Pradesh, includes a tax demand of ₹3,65,81,446 for the financial year 2019-20.
The show cause notice was issued under section 74 of the Central GST Act, 2017, SGST Act, 2017, and IGST Act, 2017. The GST Department is proposing to recover ₹3,65,81,446, which includes a tax demand of ₹1,18,74,263, interest of ₹1,28,32,920, and a penalty of ₹1,18,74,263 under Section 74 and Section 122 of the CGST/MP GST Act, 2017.
Everest Industries said it believes it has strong legal and factual grounds and will take necessary actions to defend its case. The company does not expect any material financial impact from this notice and is preparing a response to the show cause notice.
| Particulars | Details |
|---|---|
| Opposing Party | The State Goods and Services Tax (CGST) Department, Government of India |
| Agency/Tribunal | Deputy Commissioner of State Goods and Service Tax, Jabalpur, Madhya Pradesh |
| Dispute/Litigation | Excess ITC claimed in GSTR 3B as compared with GSTR 2A/2B |
| Tax Demand | ₹3,65,81,446 |
| Tax Demand (Principal) | ₹1,18,74,263 |
| Interest | ₹1,28,32,920 |
| Penalty | ₹1,18,74,263 |
Everest Industries does not expect any material financial impact from this notice and is preparing a response to the show cause notice.
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