Bharat Heavy Electricals Limited received a GST demand order; part was dropped, and the remaining demand and penalty were imposed, and the company indicated it would file an appeal soon thereafter.
Kashish Bhardwaj | Apr 1, 2026 |
Bharat Heavy Electricals Limited Receives GST Demand Order from Karnataka Authority
Bharat Heavy Electricals Limited has informed the NSE and BSE Limited, under Regulation 30 read with Schedule III and other applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘SEBI (LODR) Regulations’), that it has received an order from the Joint Commissioner of Central Tax, Bengaluru West GST Commissionerate, Bengaluru, dated March 31, 2026.
Background of the case
Based on the show cause notice issued for the period FY 2019-20 to FY 2022-23, Rs. A demand of Rs 65.75 crore was proposed. By the adjudicating authority, the demand of Rs 54.83 crore was cancelled, and they have retained the remaining demand of Rs 10.92 crore along with interest/penalty of Rs 10.80 crore. The issues raised relate to classification disputes, liability write-back, and input tax credit. The company is in the process of filing an appeal before the appellate authority within the prescribed timeline.
Key details of Order
| Particulars | Details |
| Company Name | Bharat Heavy Electricals Limited |
| Communication Type | Order in Original in respect of the demand raised under Section 74 of the CGST Act 2017 |
| Date of Receipt of Communication | March 31, 2026 |
| Authority | Joint Commissioner of Central Tax, Bengaluru West GST Commissionerate |
| Period | FY 2019-20 to FY 2022-23 |
| Balance Demand | Rs. 10.92 Cr |
| Penalty Imposed | Rs. 10.80 Cr |
Financial impact
There is no expected financial impact as the demand is not sustainable in the company’s opinion. An appeal shall be filed before the appellate authorities for contesting the balance demand of Rs 10.92 Cr.
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