BHEL gets relief as Telangana Tax Department drops Rs 207-crore GST demand
Advertisement
New Delhi, Nov 9 (IANS) Bharat Heavy Electricals Limited (BHEL) on Monday announced that it has received an adjudication order from the Telangana Commercial Tax Department dropping the entire GST demand of Rs 207.26 crore raised against the company for FY23, providing significant relief to the state-owned engineering and infrastructure major.
According to an exchange filing, the order was issued by the Assistant Commissioner (State Tax), Commercial Tax Department, Telangana, on November 7 and was received by the company on November 9.
The tax authority has dropped the demand along with the consequential interest and penalty, and BHEL said the order would have no financial impact on the company.
"It is intimated that the company has received AdjudicaƟon Order passed u/s 73 of CGST Act/ TGST Act, 2017 (received on 09.11.2026), dropping entire demand of Rs 207.26 Crore raised for FY 2022-23 against BHEL," it said.
"The requisite details in respect of the aforesaid order as prescribed under
Regulation 30 are enclosed herewith at Annexure-A. It is further declared that the
information and details provided, is true, correct and complete to the best of our
knowledge and belief," it added.
The FY23 demand formed part of a broader set of show-cause notices issued by tax authorities in September 2025 covering three financial years and aggregating Rs 586.43 crore.
The notices included demands of Rs 184.55 crore for FY22, Rs 207.26 crore for FY23 and Rs 194.62 crore for FY24.
The latest order comes after BHEL disclosed in January 2026 that tax authorities had dropped a demand of Rs 183.77 crore relating to FY22, along with the associated interest and penalty.
With the FY23 order now resolved in the company's favour, demands pertaining to both FY22 and FY23 have been dropped.
However, the GST demand of Rs 194.62 crore relating to FY24 remains under adjudication. BHEL said it expects the matter to be settled on similar lines.
Separately, the company reported a strong performance for the quarter ended September 2026.
Revenue rose 23.8 per cent year-on-year to Rs 9,300 crore, driven by growth across its key business segments.
According to an exchange filing, the order was issued by the Assistant Commissioner (State Tax), Commercial Tax Department, Telangana, on November 7 and was received by the company on November 9.
The tax authority has dropped the demand along with the consequential interest and penalty, and BHEL said the order would have no financial impact on the company.
"It is intimated that the company has received AdjudicaƟon Order passed u/s 73 of CGST Act/ TGST Act, 2017 (received on 09.11.2026), dropping entire demand of Rs 207.26 Crore raised for FY 2022-23 against BHEL," it said.
"The requisite details in respect of the aforesaid order as prescribed under
Regulation 30 are enclosed herewith at Annexure-A. It is further declared that the
information and details provided, is true, correct and complete to the best of our
knowledge and belief," it added.
The FY23 demand formed part of a broader set of show-cause notices issued by tax authorities in September 2025 covering three financial years and aggregating Rs 586.43 crore.
The notices included demands of Rs 184.55 crore for FY22, Rs 207.26 crore for FY23 and Rs 194.62 crore for FY24.
The latest order comes after BHEL disclosed in January 2026 that tax authorities had dropped a demand of Rs 183.77 crore relating to FY22, along with the associated interest and penalty.
With the FY23 order now resolved in the company's favour, demands pertaining to both FY22 and FY23 have been dropped.
However, the GST demand of Rs 194.62 crore relating to FY24 remains under adjudication. BHEL said it expects the matter to be settled on similar lines.
Separately, the company reported a strong performance for the quarter ended September 2026.
Revenue rose 23.8 per cent year-on-year to Rs 9,300 crore, driven by growth across its key business segments.
Advertisement
Note: The content of this article is sourced from a news agency and has not been edited by the ap7am team.