Bharat Heavy Electricals Ltd Receives Demand Order from GST Authorities, Karnataka for Rs. 10.92 Cr. and Penalty of Rs. 10.80 Cr.

Bharat Heavy Electricals Limited (BHEL) has received a demand order from GST Authorities, Karnataka in respect to demand raised for FY 2019-20 to 2022-23 amounting to Rs. 65.75 Cr. The Adjudicating Authority has dropped the demand by Rs. 54.83 Cr. However, a balance demand of Rs. 10.92 Cr. along with penalty of Rs. 10.80 Cr. and consequential interest as applicable is raised. The issues are on account of dispute regarding classification issues, liability write back, input tax credit, etc. BHEL is contesting the balance demand by filing an appeal before the Appellate Authorities within the prescribed timelines and there is no expected financial implication as the demand is not tenable since the case is strong on merits.