BHEL got major relief as the Telangana Commercial Tax Department dropped a ₹207.26 crore GST demand for FY23. The company said there would be no financial impact after this order. While demands for FY22 and FY23 are now gone, the ₹194.62 crore GST matter for FY24 still remains under adjudication.
BHEL has received relief from a ₹207.26 crore GST demand for FY23 after the Telangana Commercial Tax Department dropped the entire claim, along with interest and penalty. With the latest order, demands for FY22 and FY23 have been dropped, while the ₹194.62 crore FY24 matter remains under adjudication.
Bharat Heavy Electricals (BHEL) has received an adjudication order from the Telangana Commercial Tax Department dropping the entire Goods and Services Tax (GST) demand of ₹207.26 crore raised against the company for the financial year 2022-23.
The order, dated November 7, 2026, was issued by the Assistant Commissioner (State Tax), Commercial Tax Department, Telangana. BHEL received the communication on November 9, 2026, according to an exchange filing.
The demand, along with the consequential interest and penalty, has been dropped. BHEL said there would be no financial impact on the company following the order and that no further action was required.
Two of three GST demands now dropped
The GST demand for FY23 was part of show-cause notices issued by tax authorities in September 2025, covering three financial years and amounting to ₹586.43 crore.
The notices comprised a demand of ₹184.55 crore for FY22, ₹207.26 crore for FY23 and ₹194.62 crore for FY24.
In January 2026, BHEL disclosed that the tax authorities had dropped ₹183.77 crore of the demand for FY22, along with the associated interest and penalty.
With the latest order, demands relating to FY22 and FY23 have now been dropped.
FY24 matter remains under adjudication
The GST demand of ₹194.62 crore for FY24 remains under adjudication, BHEL said in its filing. The company added that the matter was expected to be settled on similar lines.
BHEL's Q2 performance
Separately, BHEL reported revenue of ₹9,300 crore for the September quarter, marking a 23.8% increase from the corresponding period last year.
Net profit more than doubled year-on-year to ₹810 crore, compared with ₹368 crore in the year-ago quarter. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) rose 77% to ₹1,026 crore.
EBITDA margin expanded by 330 basis points to 11%, against 7.7% in the corresponding quarter last year. The improvement came even as other expenses increased to ₹721 crore from ₹391 crore a year earlier.
Among its business segments, the Power division recorded revenue growth of 16.95% year-on-year to ₹6,637.9 crore. The Industry segment reported a 45% increase in revenue to ₹2,662.5 crore.