BHEL Receives GST Order from Karnataka Authorities

by- psu connect
2 Jan 2026

BHEL has received a GST demand order from Karnataka tax authorities for FY 2018–19 involving classification and input tax credit issues. The company is evaluating legal options and stated that the matter has no material financial impact.

BHEL Receives GST Order from Karnataka Authorities

New Delhi: Bharat Heavy Electricals Limited (BHEL) has received a communication from the Goods and Services Tax authorities in Karnataka regarding certain tax matters pertaining to the financial year 2018–19.

The order, dated December 31, 2025, was issued by the Joint Commissioner of Central Tax, Bengaluru West GST Commissionerate, and was received by the company on January 2, 2026. The order has been passed under Section 74 of the CGST Act, 2017, primarily relating to disputes on classification issues and input tax credit.

The authorities have raised a demand of ₹4.30 crore along with applicable interest and imposed a penalty of ₹4.15 crore. BHEL has stated that the matter does not have any material impact on the company’s financials, operations, or overall business activities. The company further informed that the order is appealable and it is currently in the process of examining the order in detail and evaluating the available legal options for filing an appeal within the prescribed timelines to substantiate its tax position.