BHEL Gets ₹207.26 Crore GST Relief, Telangana Tax Authority Drops Entire Demand With Interest And Penalty

Mumbai: State-owned Bharat Heavy Electricals Limited (BHEL) has secured major relief after Telangana's GST authorities dropped a tax demand of Rs 207.26 crore for FY 2022-23, along with associated interest and penalties.

In a regulatory filing on Monday, November 9, BHEL confirmed that the adjudicating authority had ruled in its favour, eliminating the entire demand raised against the company.

Tax Demand Withdrawn

According to the exchange filing, the Assistant Commissioner (State Tax), Commercial Tax Department, Telangana, issued the adjudication order on November 7, 2026.

BHEL received the order on November 9 under Section 73 of the Central Goods and Services Tax (CGST) Act and Telangana GST Act, 2017.

The dispute originated from a show-cause notice issued in September 2025 concerning GST liabilities for FY 2022-23.

The authority has now withdrawn the complete ₹207.26 crore demand, including consequential interest and penalties.

Earlier Relief Granted

The latest development follows another favourable GST ruling received by BHEL earlier this year.

In January 2026, the company disclosed that authorities had dropped a demand of ₹183.77 crore relating to FY 2021-22, including interest and penalties.

BHEL had originally received show-cause notices covering three financial years, involving tentative GST demands totalling ₹586.43 crore.

These included ₹184.55 crore for FY 2021-22, ₹207.26 crore for FY 2022-23 and ₹194.62 crore for FY 2023-24.

One Case Remains Pending

With the latest order, BHEL has received favourable decisions covering two financial years, significantly reducing its exposure to the disputed tax demands.

However, the GST matter concerning FY 2023-24 remains under adjudication.

The company stated that it expects the remaining case to be resolved on similar lines, although a final decision has not yet been announced.

BHEL clarified that the latest adjudication order carries no financial implications because the matter has been decided in its favour.

The filing also confirmed that no additional penalties, restrictions or sanctions were imposed. Consequently, no further action is warranted from the company regarding the settled demand.

Disclaimer: This article is based on BHEL’s exchange filing and is intended for informational purposes only, not investment advice or recommendations.

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