Bharat Heavy Electricals Limited (BHEL) has received an Adjudication Order from the GST authorities effectively dropping the entire GST demand of ₹207.26 crore raised for FY 2022-23. This favorable order, received on 09.11.2026, also includes the dropping of consequential interest and penalties. This development is positive for BHEL’s financial standing, as previously disclosed Show Cause Notices had indicated tentative GST demands totaling ₹586.43 crore across three financial years.
Favorable Adjudication Order Received for GST Demand
Bharat Heavy Electricals Limited (BHEL) has announced the receipt of a significant Adjudication Order that results in the dropping of the entire GST demand amounting to ₹207.26 crore. This demand was originally raised for the Financial Year 2022-23. The order, received by BHEL on November 9, 2026, signifies a major win for the company, as it dismisses not only the principal demand but also any associated consequential interest and penalties.
Background of the GST Demands
The aforementioned adjudication order is part of a broader set of GST demands that were issued to BHEL. In September 2025, Show Cause Notices had indicated tentative GST demands for three financial years: FY 2021-22 (₹184.55 crore), FY 2022-23 (₹207.26 crore), and FY 2023-24 (₹194.62 crore), totaling approximately ₹586.43 crore. The current order pertains specifically to the FY 2022-23 demand.
Impact on Financials
The Adjudicating Authority’s decision in favour of BHEL means there are no financial implications for the company concerning this specific demand. This is a positive outcome, especially considering the substantial amounts initially proposed. Earlier, for FY 2021-22, a similar favorable order was passed by GST Authorities, dropping a demand of ₹183.77 crore. The matter for FY 2023-24 is currently under adjudication and is expected to be settled on similar favorable lines.
BHEL has provided the requisite details as per Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, enclosed as Annexure-A, confirming the accuracy and completeness of the information provided.
Source: BSE
