Bharat Heavy Electricals Ltd (BHEL), a leading state-owned enterprise, has announced that it has been served with Goods and Services Tax (GST) showcause notices from the authorities in Telangana. These notices collectively demand over ₹586 crore from the company, signaling a significant financial challenge.
The substantial tax demands cover three consecutive financial years, starting from 2021-22. The notices were issued by the Assistant Commissioner (ST) of the Commercial Tax Department, Telangana, following an examination of BHEL’s annual GST returns and financial statements.
Addressing the potential financial implications, BHEL clarified in a recent filing to the stock exchanges that it cannot yet quantify the exact impact. This is because the matter is still at the showcause notice stage, and no final order has been issued. The breakdown of the amounts specified in the notices includes ₹184.55 crore for the fiscal year 2021-22, ₹207.26 crore for 2022-23, and ₹194.62 crore for 2023-24.
Company Believes Claims Are Untenable
BHEL asserts that the issues raised in these notices are generic and appear to be legally untenable. The company is thoroughly evaluating these points and will formulate an appropriate response to the GST authorities. Any penalties, if applicable, can only be determined once a definitive order is passed in the case.