BGR Energy Systems receives GST penalty of ₹30.66 lakh for FY 2019-20

BGR Energy Systems has received a penalty order of ₹30,65,591.26 from the Office of the Joint Commissioner, Corporate Circle, Kanpur I, Uttar Pradesh, regarding the financial year 2019-20. The order, dated June 18, 2026, was issued under Section 122(2)(b) of the CGST/SGST Act and pertains to the alleged suppression of turnover for the tax period from April 2019 to March 2020.

The aggregate penalty comprises a Central GST (CGST) penalty of ₹15,32,795.63 and a State GST (SGST) penalty of ₹15,32,795.63. The company received the order on the same date it was issued.

Details of the Order

The disclosure was made to the exchanges pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The table below outlines the key particulars of the regulatory action:

SL.NO	Particulars	Details
1.	Name of the authority	Office of the Joint Commissioner, Corporate Circle, Kanpur I, Uttar Pradesh
2.	Nature and details of the action(s) taken, or order(s) passed	Order for imposition of penalty ₹30,65,591.26 under Section 122(2)(b) of the CGST/SGST Act.
3.	Date of receipt of direction or order	Date of Order: 18-06-2026 Date of receipt of order: 18-06-2026
4.	Details of the violation(s) / contravention(s) committed or alleged to be committed	The Order has been passed by the GST Authority under Section 122(2)(b) of the CGST/SGST Act, imposing a penalty on the Company in respect of the alleged suppression of turnover for the tax period April 2019 to March 2020.
5.	Impact on financial, operation or other activities of the listed entity	No material financial impact on the Company at this stage. The Company is going to appeal against the said order.

Company Response

BGR Energy Systems stated that there is no material financial impact on the company at this stage. The company has indicated that it intends to file an appeal against the order passed by the GST authority. S. Sundar, Company Secretary & Compliance Officer, signed the disclosure on behalf of the company.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.55%	-3.99%	+6.60%	+0.41%	+207.74%	+343.97%

BGR Energy Systems has received a modified order from the Additional Commissioner of State Tax, Chhattisgarh, reducing the aggregate Goods and Services Tax (GST) demand from ₹33,65,67,267 to ₹21,04,87,008. The order, issued in Form GST APL-04 on June 10, 2026, modifies an earlier demand order dated December 28, 2023. This modification results in a relief of ₹12,60,80,259 for the company.

The Appellate Authority partly modified the original demand, confirming an aggregate amount of ₹21,04,87,008 against the company. The confirmed demand pertains to alleged tax, interest, and penalty under the applicable provisions of GST law as raised in the earlier order. The company received the order on June 10, 2026, the same date it was passed.

Details of the Order

The disclosure was made pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The following table outlines the key particulars of the regulatory action:

Particulars	Details
Name of the authority	Additional Commissioner of State Tax, Chhattisgarh
Nature of action	Order passed in Form GST APL-04 modifying the earlier GST demand order bearing Order No. ZD221223043890S dated December 28, 2023. The Appellate Authority confirmed an aggregate demand of ₹21,04,87,008.
Date of order	June 10, 2026
Date of receipt	June 10, 2026
Details of violation	Alleged GST demand relating to tax, interest, and penalty under GST law.

Financial Impact and Next Steps

BGR Energy Systems stated that there is no material financial impact on the company at this stage following the modified order. However, the company intends to challenge the confirmed demand. The management indicated that the company is going to appeal against the said order to further contest the liability.