Bharat Heavy Electricals Limited has informed the Exchange about Pendency of Litigation(s)/dispute(s) or the outcome impacting the Company
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BHEL has received a combined Show Cause Notice (SCN) from the Additional Commissioner of Central Tax, Mysuru Audit Commissionerate, Bengaluru under Section 74 of the CGST Act, 2017, covering financial years 2019-20 to 2022-23. The demand indicated in the notice is Rs. 65.75 crore, along with applicable interest and penalty. The issues raised relate mainly to GST classification, Input Tax Credit (ITC) reconciliation, and outward supply reconciliation. BHEL has stated that there will be no material impact on its financials, operations, or other activities, and considers the demand not tenable. The company will file a detailed reply with supporting evidence within the prescribed timeline.
For shareholders, this is a routine tax dispute disclosure and is not expected to materially affect the company's financials or operations. However, the final outcome of the proceedings could lead to a financial liability of up to Rs. 65.75 crore plus interest and penalty if the company is unsuccessful in its defense.