Image Source: Suyash.dwivedi, CC BY-SA 4.0, via Wikimedia Commons
New Delhi– State-owned engineering major Bharat Heavy Electricals Limited (BHEL) has received a show cause notice from the Goods and Services Tax (GST) authorities in Telangana.
The notice pertains to a potential tax liability amounting to ₹586.43 crores spanning three financial years from 2021-22 to 2023-24.
The company received the communication from the Assistant Commissioner (ST) of the Commercial Tax Department, Telangana, on 18th September 2025.
According to BHEL’s regulatory filing, the show cause notices were issued under Section 73 of the CGST/TGST Act, 2017, following a review of the company’s GST Annual Returns and Financial Statements.
The year-wise breakdown of the amount indicated in the notice is as follows:
- Financial Year 2021-22: ₹184.55 Crore
- Financial Year 2022-23: ₹207.26 Crore
- Financial Year 2023-24: ₹194.62 Crore
In its initial response, BHEL has stated that the issues raised by the authorities are “generic in nature and seems to be not tenable”.
This indicates that the company believes it can successfully contest the claims. BHEL is currently evaluating the notice to prepare a suitable reply to the GST authorities.
For investors, it is important to note that this is a preliminary stage of the process. BHEL has clarified that since a final order has not yet been passed, the “expected financial implications cannot be quantified at this stage”.
Any potential penalties can only be determined after an official order is issued.
This disclosure was filed with the BSE and National Stock Exchange of India pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The communication was signed by (Sayed Salahuddin), Manager (Corporate Communication), BHEL.
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