BGR Energy Systems Limited has received a significant GST demand order from tax authorities, requiring the company to pay ₹32.11 crores for alleged tax violations during the period from April 2018 to March 2021. The company disclosed this development through a regulatory filing on December 31, 2025.

GST Order Details

The Joint Commissioner of GST, Guntur–Visakhapatnam–Amaravathi Commissionerate, CBIC, Andhra Pradesh, issued the Order-in-Original dated December 31, 2025, under Sections 74 and 122 of the CGST Act, 2017. The order addresses tax compliance issues spanning three financial years.

Nature of Alleged Violations

The GST order alleges short payment or non-payment of GST in relation to certain taxable supplies during the financial years 2018-19 to 2020-21. The tax demand breakdown shows specific components that contribute to the overall liability.

The order specifically targets taxable supplies made by the company during the three-year period, suggesting discrepancies in GST compliance and payment obligations.

Company's Response Strategy

BGR Energy Systems has indicated its intention to challenge the GST order through the appropriate legal channels. The company stated that it will be filing an appeal against the Order-in-Original, suggesting it disputes the allegations and the quantum of demand raised by the tax authorities.

The company has not provided specific details about the timeline for filing the appeal or the grounds on which it plans to contest the order. The appeal process will allow BGR Energy Systems to present its case before higher tax authorities and seek relief from the demanded amount.

Regulatory Compliance

The disclosure was made under Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulatory requirement ensures that material developments affecting listed companies are promptly communicated to stock exchanges and investors.

The company received the order on December 31, 2025, and made the disclosure on the same date, demonstrating compliance with immediate disclosure requirements for significant regulatory actions. The filing was signed by S. Sundar, Company Secretary & Compliance Officer of BGR Energy Systems Limited.

BGR Energy Systems has received a GST demand order of ₹32.72 lakh from tax authorities for the financial year 2021-22. The Chennai-based infrastructure company disclosed this development to stock exchanges on December 30, 2025, under regulatory compliance requirements.

GST Demand Order Details

The demand order was issued under Section 73 of the CGST Act, 2017, by the Joint Commissioner, Corporate Circle, Kanpur I, Uttar Pradesh. The order was passed and received by the company on December 30, 2025, following a Show Cause Notice dated September 30, 2025.

Alleged Violations

The GST authorities have alleged specific violations that led to the demand order. The company faces accusations related to tax compliance issues during the financial year 2021-22.

The alleged violations include:

• Suppression of turnover
• Incorrect determination of place of supply
• Short payment of GST based on these issues

Financial Impact and Company Response

The total demand of ₹32.72 lakh comprises multiple components including tax, interest, and penalty amounts. BGR Energy Systems has indicated that it is planning to file an appeal against the order to seek appropriate remedy.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company provided details as per SEBI circulars dated July 13, 2023, and November 11, 2024, which mandate disclosure of actions by regulatory authorities.

BGR Energy Systems, engaged in infrastructure development and operations, continues to address the matter through appropriate legal channels while maintaining transparency with stakeholders through timely regulatory disclosures.