HEG Limited announced that the State GST authority in Madhya Pradesh has officially dropped the Show Cause Notice issued previously concerning the tax period FY 2019-20. This notice had proposed the recovery of IGST refunds along with a penalty amounting to Rs. 282.34 Crores. The authority dropped the proceedings under Section 74 of the MPGST Act 2017, based on the information available on record, as communicated via an order dated March 17, 2026.
Resolution of Tax Proceeding
HEG Limited provided an update regarding tax proceedings initiated by the Deputy Commissioner (SGST) Mandideep Circle, Bhopal Division-2. This update concerns the original Show Cause Notice issued for the tax period FY 2019-20, which had provisionally proposed the recovery of erroneous IGST refunds coupled with a penalty totaling Rs. 282.34 Crores.
The company is pleased to confirm that the GST authority has officially dropped the show cause notice pertaining to the FY 2019-20 period. This decision was finalized and communicated through an order dated March 17, 2026. The proceedings were concluded on the basis of information already available on record with the authority.
Status of Related Matters
The prior communication, dated November 10, 2025, had informed stakeholders that similar proceedings were initiated for both FY 2019-20 and FY 2020-21, each involving a potential liability of Rs. 282.34 Crores.
It is noted that the action taken by the authority on March 17, 2026, only pertains to the FY 2019-20 case. The nature of the action taken was the dropping of proceedings under Section 74 of the MPGST Act 2017 read with Section 74 of the CGST Act 2017. The impact on the company’s financial or operational activities is reported as Nil, as the potential liability has been resolved favorably for the dropped period.
Source: BSE
