GE Power India Limited has informed stock exchanges about receiving a significant Goods and Services Tax (GST) demand notice from tax authorities. The company disclosed this development in compliance with SEBI listing regulations, highlighting potential financial implications from the tax dispute.

GST Demand Details

The Joint Commissioner, Central Goods Service Tax Jurisdiction, Noida, Uttar Pradesh, has imposed a GST demand along with interest and penalty on the company. The demand covers the period from FY2018 to FY2021 and relates to alleged non-compliance in GST reporting procedures.

Nature of Dispute

The tax authorities have alleged that GE Power India Limited did not report and discharge GST liability on advances received for specified contracts in a timely manner. However, the company has clarified its position regarding the compliance issue.

The order has been passed under section 74 of the Central GST Act, 2017 and Uttar Pradesh GST Act, 2017. The company maintains that while the GST liability was not discharged on advances initially, it was subsequently discharged at the time of issuance of the corresponding invoices.

Company's Response

GE Power India Limited is currently in the process of evaluating the tax order received from the authorities. The company has indicated its intention to challenge the demand through proper legal channels.

The management plans to file an appeal against the GST demand order before higher forums. This approach suggests the company believes it has valid grounds to contest the tax authorities' interpretation of GST compliance requirements.

Regulatory Compliance

The company has fulfilled its disclosure obligations by informing both the National Stock Exchange of India Limited and BSE Limited about this development. This notification was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The disclosure ensures that investors and stakeholders are aware of the potential financial implications arising from this tax dispute, maintaining transparency in corporate governance practices.

GE Power India Limited (GEPIL) has reported a 45% growth in its core services orders for Q2 FY2025-26, demonstrating the company's successful pivot towards a more focused and profitable business model. The company achieved a revenue of INR 281.00 crores for the quarter, with core services orders growing to INR 162.00 crores.

Key Financial Highlights

• Revenue for Q2 FY2025-26: INR 281.00 crores
• Core services orders: INR 162.00 crores (45% growth year-on-year)
• Profit before tax and exceptional items: INR 33.00 crores (compared to INR 8.00 crores in Q2 FY2024-25)

Strategic Settlements and Financial Prudence

GEPIL has made significant strides in resolving long-standing disputes and optimizing its financial position:

1. BHEL Settlement: The company has reached an agreement with BHEL for the recovery of INR 340.00 crores. This settlement relates to receivables for boiler pressure parts supplied by GEPIL for various BHEL projects. The first tranche of INR 50.00 crores was received in October 2025.

2. Jaypee Group Settlement: GEPIL has amicably settled disputes with Jaypee Group companies, resulting in a recovery of INR 25.00 crores. This settlement involves the termination of two FGD EP contracts valued at INR 775.00 crores.

Operational Focus and Market Expansion

GEPIL is sharpening its focus on high-margin, shorter-cycle opportunities:

• The company has completed the strategic demerger of its Durgapur facility to JSW Energy, streamlining its portfolio and unlocking shareholder value.
• GEPIL has expanded its international presence, securing orders in seven countries including Saudi Arabia, Turkey, Austria, Australia, UAE, Malaysia, Indonesia, and Morocco.
• The company won a NOx abatement and performance improvement order worth INR 47.00 crores from Adani Mahan for 600-megawatt units.

Management Commentary

Puneet Bhatla, Managing Director of GEPIL, stated, "Our strategic focus on core services is progressing well, as evidenced by the 45% quarter-on-quarter growth. We have significantly improved our operational profitability, which is a direct outcome of our disciplined execution of our backlog and growth initiatives in the Services segment."

Aashish Ghai, CFO, added, "The settlements with BHEL and Jaypee Group, along with the strategic demerger of the Durgapur facility, reflect our commitment to reducing financial exposure, optimizing operational costs, and marching towards sustained profitability backed by our core services business."

Future Outlook

GEPIL remains confident in its ability to grow and stabilize its services segment, focusing on profitable, fast-turnaround, and cash-accretive orders. The company's strategy includes:

1. Expanding its core services business, including spare parts supply, repair capabilities, and overhauling and maintenance services.
2. Leveraging its access to manufacturing facilities through strategic partnerships and agreements.
3. Capitalizing on the expected growth in thermal power generation, which is projected to contribute over 55% of electricity generation by 2030-2032.

As GEPIL continues to execute its focused strategy, investors can expect the company to build on its momentum in the core services business while maintaining financial discipline and operational excellence.