Bharat Heavy Electricals Limited Receives GST Demand Order from Karnataka Authority

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.