News ArticleBharat Heavy Electricals Gets Rs. 207.26 Crore GST Demand Dropped for FY 2022-23 by Telangana Tax Authority
Adjudication order favors BHEL, nullifying the GST charge including interest and penalties for FY 2022-23; FY 2021-22 demand also dropped earlier, FY 2023-24 under review
Bharat Heavy Electricals Limited announced receipt of an adjudication order from the Telangana Commercial Tax Department dropping the entire GST demand of Rs. 207.26 Crore raised for fiscal year 2022-23, including related interest and penalties. This follows a previous order in favor of BHEL for FY 2021-22, while the GST matter for FY 2023-24 remains under adjudication.
Bharat Heavy Electricals Limited
Legal / Regulatory
Bharat Heavy Electricals Limited (BHEL) announced that the Telangana Commercial Tax Department has dropped the entire Goods and Services Tax (GST) demand of Rs. 207.26 Crore raised for fiscal year 2022-23 following an adjudication order received on November 9, 2026.
The adjudication order was passed under Section 73 of the CGST Act/ TGST Act, 2017, terminating the tax demand including consequential interest and penalties. This resolves a GST dispute initiated with show cause notices issued in September 2025.
Earlier, a similar GST demand for Rs. 183.77 Crore for FY 2021-22 was also dropped following an order in BHEL's favor, disclosed in January 2026.
For the third fiscal year under scrutiny, FY 2023-24, a tentative GST demand of Rs. 194.62 Crore remains under adjudication and is expected to be settled on similar lines.
Highlights
- Telangana Commercial Tax Department passed adjudication order on November 7, 2026, received by BHEL on November 9, 2026.
- Entire GST demand of Rs. 207.26 Crore for FY 2022-23 dropped, including interest and penalty.
- No financial impact expected on BHEL as the demand is waived.
- Previous GST demand of Rs. 183.77 Crore for FY 2021-22 also dropped by the authorities.
- GST demand for FY 2023-24 amounting to Rs. 194.62 Crore is still under adjudication.
- Total tentative GST demands for FY 2021-22 to FY 2023-24 were Rs. 586.43 Crore prior to dismissals.
Key Data Snapshot
What happened
- BHEL received an adjudication order from the Assistant Commissioner (ST), Telangana Commercial Tax Department, dropping the entire GST demand of Rs. 207.26 Crore raised for FY 2022-23.
- The order includes cancellation of associated interest and penalty charges.
- This follows a prior favorable order for FY 2021-22 where Rs. 183.77 Crore demand was dropped.
- The GST demand related to FY 2023-24 for Rs. 194.62 Crore remains under adjudication.
- There is no financial impact on BHEL as the tax demand for the contested years has been waived or is pending finalization.
Regulatory and governance context
- The GST demand was raised under Section 73 of the CGST Act/TGST Act, 2017.
- The show cause notices for the GST demands were issued by Telangana GST authorities in September 2025.
- The adjudication process has resulted in orders favorable to BHEL for two fiscal years so far.
- The third fiscal year’s GST demand is still under review and expected to be resolved similarly.
Next milestones
- The pending GST demand for FY 2023-24 remains under adjudication with expectation of a similar dismissal.
- BHEL will await the final adjudication order for FY 2023-24 to conclude the tax compliance process for that period.
Highlights
- Telangana Commercial Tax Department passed adjudication order on November 7, 2026, received by BHEL on November 9, 2026.
- Entire GST demand of Rs. 207.26 Crore for FY 2022-23 dropped, including interest and penalty.
- No financial impact expected on BHEL as the demand is waived.
- Previous GST demand of Rs. 183.77 Crore for FY 2021-22 also dropped by the authorities.
- GST demand for FY 2023-24 amounting to Rs. 194.62 Crore is still under adjudication.
- Total tentative GST demands for FY 2021-22 to FY 2023-24 were Rs. 586.43 Crore prior to dismissals.
Disclosures
- Section 73 of CGST Act/ TGST Act, 2017
- SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Regulation 30
More News on Legal / Regulatory
View allLatest corporate announcements and market updates in Legal / Regulatory.
Bliss GVS Pharma Penalized Rs. 1.8 Lakh Each by BSE and NSE for Board Composition Non-Compliance
Bliss GVS Pharma Limited has been fined Rs. 1,80,000 each by the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) due to non-compliance with Regulation 17(1) of SEBI Listing Regulations related to board composition, including failure to appoint a woman director. The company has paid the fines in full.
Read Full Story
Tata Teleservices Receives Rs. 25,000 Penalty for Violation of Telecom License Conditions
Tata Teleservices (Maharashtra) Limited has been fined Rs. 25,000 by the Department of Telecommunications for alleged violations of subscriber verification and bulk user premises inspection requirements under its Unified License Agreement.
Read Full Story
CG Power Secures Stay from Aurangabad High Court on MPCB Closure of Waluj Manufacturing Unit
CG Power and Industrial Solutions Limited reported that the Aurangabad High Court has stayed the Maharashtra Pollution Control Board's directive to close its Waluj manufacturing unit, preserving an operation that generates roughly 2.5% of the company's annual consolidated revenue.
Read Full Story
