BHEL Receives GST Demand Order; Faces ₹10.92 Cr Demand & ₹10.80 Cr Penalty
BHEL received a GST demand order for FY19-23. The demand is ₹10.92 crore, with a penalty of ₹10.80 crore. The company believes the case is strong on merits and will appeal the balance demand. No immediate financial implication is expected.
The demand and penalty, while contested, represent a potential financial outflow for the company. The outcome of the appeal will determine the ultimate financial impact.
The company has received a demand order with a significant penalty, which is a negative development, even though they plan to appeal.
Bharat Heavy Electricals Limited (BHEL) has received a demand order from the GST Authorities in Karnataka. The order pertains to a demand raised via Show Cause Notice for the Financial Years 2019-20 to 2022-23.
While the demand originally amounted to ₹65.75 crore, the Adjudicating Authority has dropped ₹54.83 crore of this demand. The remaining balance demand stands at ₹10.92 crore, along with a penalty of ₹10.80 crore and applicable consequential interest. The issues raised by the authority are related to disputes concerning classification, liability write-back, and input tax credit.
BHEL has stated that there is no expected financial implication as the company believes the case is strong on merits. However, they intend to file an appeal before the Appellate Authorities to contest the balance demand of ₹10.92 crore and the penalty of ₹10.80 crore within the prescribed timelines.
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