BHEL wins appeal, substantial GST demand set aside

Bharat Heavy Electricals Limited (BHEL) announced on September 30, 2025, the receipt of a favorable order from the Commissioner (Appeals), Hyderabad, Telangana. The ruling settles an appeal against a demand for GST, interest, and penalty previously reported to the Stock Exchange on March 29, 2025.

The demand, amounting to 10.76 crore rupees in GST, 7.74 crore rupees in interest, and 1.07 crore rupees in penalty for the financial year 2020-21, stemmed from an alleged mismatch of GST credit. The appellate authority's order, dated September 17, 2025, allowed BHEL’s appeal, setting aside the entire demand.

This outcome is favorable for BHEL, as the alleged demand on account of mismatch of GST credit availed in GST returns vis-à-vis input tax credit available on the GST portal has been dropped. The company stated that there is no impact on its financials or operations.