New Delhi

BharatHeavy Electricals Limited (BHEL) on Monday announced that it has received an adjudication order from the Telangana Commercial Tax Department dropping the entire GST demand of Rs207.26 crore raised against the company for FY23, providing significant relief to the state-owned engineering and infrastructure major.

According to an exchange filing, the order was issued by the Assistant Commissioner (State Tax), Commercial Tax Department, Telangana, on November 7 and was received by the company on November 9.

The tax authority has dropped the demand along with the consequential interest and penalty, and BHEL said the order would have no financial impact on the company.

"It is intimated that the company has received Adjudication Order passed u/s 73 of CGST Act/ TGST Act, 2017 (received on 09.11.2026), dropping entire demand of Rs207.26 Crore raised for FY 2022-23 against BHEL," it said.

"The requisite details in respect of the aforesaid order as prescribed under Regulation 30 are enclosed herewith at Annexure-A. It is further declared that the information and details provided, is true, correct and complete to the best of our knowledge and belief," it added.

The FY23 demand formed part of a broader set of show-cause notices issued by tax authorities in September 2025 covering three financial years and aggregating Rs586.43 crore. The notices included demands of Rs184.55 crore for FY22, Rs 207.26 crore for FY23 and Rs 194.62 crore for FY24.

The latest order comes after BHEL disclosed in January 2026 that tax authorities had dropped a demand of Rs 183.77 crore relating to FY22, along with the associated interest and penalty.

With the FY23 order now resolved in the company's favour, demands pertaining to both FY22 and FY23 have been dropped.