Bharat Heavy Electricals Limited (BHEL) has received a GST demand order from Karnataka authorities, with significant financial implications involving a balance demand of ₹10.92 crore and an additional penalty of ₹10.80 crore. The company disclosed this development under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

GST Demand Order Details

The demand order was received from the Joint Commissioner of Central Tax, Bengaluru West GST Commissionerate, Bengaluru on March 31, 2026. The order represents a significant reduction from the original show cause notice issued for the period FY 2019-20 to FY 2022-23.

Nature of Disputes

The GST demand order addresses several compliance issues identified by the authorities. The disputes primarily revolve around:

• Classification issues
• Liability write-back matters
• Input tax credit disputes
• Other related GST compliance matters

The adjudicating authority has passed an order under Section 74 of the CGST Act, 2017, after reviewing the original show cause notice that was reported on September 29, 2025.

Company's Response and Financial Impact

BHEL has indicated that it expects no financial implications from this demand, stating that the case is strong on merits and the demand is not tenable. The company is preparing to contest the balance demand through proper legal channels.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 read with Para A of Part A of Schedule III of SEBI (LODR) Regulations, 2015. The communication was signed by Jaya Mitra, Manager of Corporate Communication, and submitted to both BSE Limited and National Stock Exchange of India Limited on April 1, 2026.

The company maintains that despite the substantial penalty and demand amounts, the strong merit of their case provides confidence in successfully contesting the order through the appellate process.

Bharat Heavy Electricals Limited (BHEL) has officially confirmed receiving a five-year extension to procure 21 specific items from countries that share land borders with India. The confirmation came through a regulatory filing in response to BSE's inquiry regarding news reports about the relaxation.

Official Confirmation Details

BHEL received Office Memorandum No F.7/10/2021-PPD(II) from the Department of Expenditure (DoE), Ministry of Finance, granting relaxation under Rule 144(xi) of General Financial Rules (GFR). The approval allows the state-owned power equipment manufacturer to continue procurement from land border sharing countries for a specified period.

Timeline of Events

The regulatory filing provides a chronological sequence of events leading to the approval. DoE issued a communication seeking details of equipment/items where procurement was being done from non-land border sharing countries due to GFR rule 144(XI). BHEL provided the required inputs to its administrative ministry, leading to the subsequent relaxation approval.

Regulatory Compliance

The company clarified that no negotiations took place for this approval, and the process was initiated through standard government communications. BHEL emphasized that such government communications are beyond the company's control and cannot be predicted in advance. The filing confirmed no regulatory or legal proceedings are involved in this matter.

This extension provides BHEL with enhanced operational flexibility in its procurement processes while ensuring compliance with government regulations regarding imports from neighboring countries. The approval demonstrates the government's recognition of BHEL's operational requirements in the power generation and transmission equipment sector.