BHEL gets ₹586 crore GST show cause notice from Telangana authorities

Bharat Heavy Electricals Ltd (BHEL) on Friday said it has received a show cause notice amounting to ₹586.43 crore from the GST authorities in Telangana.

The Assistant Commissioner (ST), Commercial Tax Department, Telangana, issued the notice under section 73 of the CGST/TGST Act, 2017. The demand covers the financial years 2021–22, 2022–23 and 2023–24, based on GST annual returns and financial statements.

The company said the issues raised in the notice are “generic in nature” and appear to be “not tenable.” It added that the matter is at the show cause notice stage and no order has yet been passed, so the financial implications cannot be quantified at this stage. BHEL said it is evaluating the issues and will respond suitably to the authorities.

The notice cites amounts of ₹184.55 crore for FY22, ₹207.26 crore for FY23 and ₹194.62 crore for FY24, taking the total to ₹586.43 crore.

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At 1:47 pm, shares of BHEL were trading at ₹240.24 on the NSE, up 2.45%. The stock has lost 9.75% over the past year, compared to a 1.92% decline in the Nifty and a 16.58% drop in the Nifty Energy index.

BHEL shares, however, have gained 8.85% in the past month, outperforming the Nifty Energy index’s 2.58% rise. The stock also extended its winning streak to a fifth consecutive session on Friday.