BGR Energy Systems closes ₹634 crore Rajasthan VAT case; pays ₹29 crore under amnesty

BGR Energy Systems Ltd on Wednesday (February 18) said it has opted for the Rajasthan VAT Amnesty Scheme, 2022, to settle outstanding Value Added Tax (VAT) demands pertaining to earlier financial years.

"This is to inform you that BGR Energy Systems Limited has opted for the Rajasthan VAT Amnesty Scheme, 2022, for the settlement of outstanding Value Added Tax (VAT) demands pertaining to earlier financial years.

Pursuant to the said scheme, the Company has filed the prescribed application and made payments towards settlement of the outstanding VAT demands relating to Financial Years 2009–10, 2010–11 and 2011–12, as per the acknowledgements received from the Commercial Taxes Department, Rajasthan," according to a stock exchange filing.

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The company said it has filed the prescribed application under the scheme and made payments towards settlement of VAT demands relating to financial years 2009–10, 2010–11 and 2011–12, as per acknowledgements received from the Commercial Taxes Department, Rajasthan.

The Office of the Commercial Taxes Officer (CTO), Kota – B Circle, Rajasthan, issued orders under the Rajasthan VAT Amnesty Scheme, 2022, allowing the settlement of the outstanding VAT demands for the said financial years.

Pursuant to the orders, the company paid the prescribed settlement amount, and the balance comprising interest, penalty and late fee was waived in accordance with the scheme provisions. The settlement results in the closure of the legacy VAT demands, subject to the completion of procedural formalities.

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Rajasthan VAT authorities had issued orders for 2009–10, 2010–11 and 2011–12 demanding ₹634 crore for the delayed deposit of GST amount. The company filed under the Amnesty Scheme and received relief of ₹606.43 crore by remitting ₹29.1 crore. The authorities also adjusted ₹95.65 crore lying as VAT credit in the company’s books.

The company stated that there is no adverse impact on its ongoing operations or business activities. Shares of BGR Energy Systems Ltd ended at ₹346.65, up by ₹16.25, or 4.92%, on the BSE.