BGR Energy Systems has received a substantial GST demand order from the Commissioner, Central Goods and Services Tax (CGST), Nellore, with significant financial implications for the infrastructure company. The order relates to alleged tax violations spanning multiple financial years.

GST Demand Details

The demand order carries substantial financial implications for the company:

Nature of Alleged Violations

The GST demand stems from alleged improper Input Tax Credit (ITC) practices during the financial years 2018-19 to 2020-21. The specific violations include:

• Wrong availment and utilisation of Input Tax Credit on certain invoices
• Vendors of the company had not filed GSTR-3B returns
• Consequently, these vendors had not discharged their GST liability

These allegations suggest discrepancies in the company's tax credit claims based on transactions with non-compliant suppliers.

Company's Response Strategy

BGR Energy Systems has outlined its approach to address the demand order:

Regulatory Compliance

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has provided detailed information as per SEBI circulars, ensuring transparency with stakeholders regarding regulatory actions.

BGR Energy Systems plans to challenge the order through the appropriate appellate process, suggesting confidence in its position regarding the alleged violations. The outcome of this appeal will be crucial in determining the final financial impact on the company.

BGR Energy Systems Limited , a prominent player in the energy sector, has received a demand order from the Assistant Commissioner, Bhubaneswar Division, for excess Input Tax Credit (ITC) claims. The order, which pertains to the financial year 2022-23, comes under Section 73 of the CGST Act 2017 and OGST Act, 2017.

Demand Details

The demand order, dated October 31, 2025, outlines the following key points:

The excess ITC amount is broken down as follows:

Partial Relief

It's worth noting that the adjudicating authority has partially accepted BGR Energy Systems' defense. The demand of Rs. 64,21,696 for the financial year 2021-22 has been dropped after verification showed no excess ITC was availed for that period.

Company's Response

BGR Energy Systems plans to contest the confirmed demand. The company has stated its intention to file an appeal before the Appellate Authority against the order.

Regulatory Compliance

This disclosure has been made by BGR Energy Systems Limited in compliance with Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has promptly informed both the National Stock Exchange of India Limited and BSE Limited about this development.

As the matter is now subject to appeal, stakeholders and investors will be keenly watching for further developments and their potential impact on the company's financial position.