BHEL’s 9.9 Million Rupee Tax Hurdle-A Minor Bump on a Power-Packed Journey

Bharat Heavy Electricals Ltd (BHEL), India's largest engineering and manufacturing firm in the energy and infrastructure industry, has received a total tax demand order of 9.9 million rupees (includes Interest and Penalty). The order, which is made under the authority of the Visakhapatnam GST Authorities, relates to previous years of assessment and forms part of the company's normal regulatory compliance.

 

The aforesaid Demand has been raised on account of:

1. non-payment of Central Excise Duty on the amount Collected as Freight and Insurance. 

2. Wrong Availment of Cenvat Credit of Service Tax on the Ineligible Input Services

 

BHEL has communicated that it is considering the tax demand terms and will take required action according to the prevailing laws and regulations. The company reiterated that the project will not have any material effect on the company's financial position or have any effect on its ongoing operations.

 

This revelation follows on the heels of BHEL continuing to post robust financial performance, with a strong 19% year-on-year revenue growth in fiscal 2025, reflecting its healthy order book and execution strength. The management remains committed to meeting all statutory requirements while maintaining its focus on operational excellence and stakeholders' interests intact.

 

Source: MT Newswires