BHEL receives GST show cause notice for discrepancies totaling ₹586.43 crore

Bharat Heavy Electricals Limited (BHEL) announced on September 19, 2025, that it has received a show cause notice from GST Authorities, Telangana, dated September 18, 2025. The notice, issued by the assistant commissioner (ST), Commercial Tax Department, Telangana, is based on discrepancies identified in GST annual returns and financial statements for the financial years 2021-22 to 2023-24.

The potential financial implications outlined in the show cause notices total ₹586.43 crore. This includes ₹184.55 crore for FY 2021-22, ₹207.26 crore for FY 2022-23, and ₹194.62 crore for FY 2023-24. BHEL stated that the issues raised are generic and appear to be not tenable, and the exact penalty can only be quantified after an order is issued.

BHEL is currently evaluating the issues raised to prepare a suitable reply to the GST Authorities. The company clarified that as the case is at the show cause notice stage, and no order has been issued, the expected financial implications cannot be definitively quantified at this time.