BGR Energy Systems Limited has received a significant GST demand order worth ₹4.46 crores from Gujarat tax authorities, highlighting ongoing regulatory scrutiny in the infrastructure sector. The company disclosed this development through a regulatory filing on December 30, 2025, following receipt of the demand order from tax officials.

GST Demand Order Details

The Assistant Commissioner of State Tax, Unit-69, Vyara, Gujarat issued the demand order under Section 74 of the CGST/GGST Act, 2017. The order, referenced as ZD241225143469C and dated December 29, 2025, addresses alleged differential GST liability spanning multiple financial years.

Nature of Alleged Violations

The tax authorities have identified discrepancies between turnover figures reported in different GST returns across three financial years. The alleged violations include:

• Under-reporting of taxable turnover in GSTR-3B returns
• Mismatches with GST-TDS turnover reflected in GSTR-7 returns
• Failure to reconcile differences between the two reporting formats
• Covering financial years 2018-19, 2022-23, and 2023-24

The authorities have characterized these discrepancies as suppression of facts and willful misstatement with intent to evade tax, which triggered proceedings under Section 74 of the GST Act along with interest and penalty provisions.

Company's Response and Impact Assessment

BGR Energy Systems has indicated its intention to challenge the demand order through the appropriate legal channels. The company stated it will file an appeal against the order, suggesting it disputes the tax authorities' findings and calculations.

Regarding operational impact, the company has assessed that the GST demand order will not significantly affect its business operations. This suggests the company views the matter as a regulatory dispute rather than a fundamental business challenge.

Regulatory Compliance Context

The disclosure was made in compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The company provided detailed information as required under SEBI circulars regarding actions initiated by regulatory authorities, ensuring transparency for investors and stakeholders.

The matter represents part of ongoing GST compliance scrutiny faced by companies across various sectors, particularly regarding reconciliation of different GST return formats and accurate reporting of taxable turnover.

BGR Energy Systems has received a regulatory order from tax authorities regarding alleged Input Tax Credit violations spanning nearly three years. The company disclosed receiving Order-in-Appeal No. 1153-1155 (SCM) CGST/JDR/2025 dated November 28, 2025, on December 29, 2025, under SEBI listing regulations.

Order Details and Background

The Commissioner (Appeals), Central Goods & Service Tax and Central Excise, Jodhpur, passed the order in response to appeals filed by BGR Energy Systems against Order-in-Original No. 10/GST/UDR/2023-24/JC dated July 30, 2024. The original order was issued by the Joint Commissioner, CGST, Udaipur, following a GST audit conducted for the period July 2017 to March 2020.

Financial Impact and Allegations

The order addresses alleged wrongful availment of Input Tax Credit under the CGST Act, 2017 provisions. The financial implications are detailed in the following breakdown:

The allegations center on the company's Input Tax Credit claims during the specified period, with tax authorities questioning the legitimacy of these availments under GST regulations.

Regulatory Compliance and Disclosure

BGR Energy Systems made the disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, in compliance with SEBI circulars dated July 13, 2023, and November 11, 2024. The company provided comprehensive details about the regulatory action as required by listing obligations.

Company's Response and Next Steps

BGR Energy Systems stated it is presently examining the Order-in-Appeal and evaluating further legal remedies as may be advised. The company indicated its intention to appeal against the order, suggesting it disputes the findings of the tax authorities. The examination process will likely involve detailed review of the order's contents and consultation with legal advisors to determine the most appropriate course of action.

The company has not quantified the specific financial impact on its operations in monetary terms beyond the disputed amounts mentioned. The disclosure fulfills the company's obligation to keep investors informed about significant regulatory developments that could potentially affect its financial position.