Bharat Heavy Electricals (BHEL) has received a show cause notice from the GST authorities in Telangana on Thursday. The show cause notices are based on discrepancies observed in BHEL’s GST annual returns and financial statements for the financial years 2021-22 to 2023-24.
The notices indicate a potential liability of Rs 586.43 crore, including Rs 184.55 crore for 2021-22, Rs 207.26 crore for 2022-23, and Rs 194.62 crore for 2023-24. However, as no final order has been issued yet, the expected financial implications cannot be quantified at this stage.
No penalties imposed yet
BHEL, however, said that the issues raised in the notices are “generic in nature and seem not tenable.” The company added that any penalty or financial implications will only be determined after the final order is issued.
Through its regulatory filing, the company said that it is evaluating the matters raised and is preparing a suitable response to the GST authorities. No further action or sanctions have been imposed at this stage.
Share price of BHEL
The share price of BHEL has seen a significant surge in the past six months, rising over 15.90 per cent.