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.

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.