HEG Gets Major Relief as GST Authority Drops Rs 282 Crore IGST Refund Demand for FY20

An announcement from HEG Limited ( (IN:HEG) ) is now available.

HEG Limited has announced that the Goods and Services Tax authority in Madhya Pradesh has dropped a show cause notice for the financial year 2019-20, which had proposed recovery of allegedly erroneous IGST refunds and penalties totaling Rs 282.34 crore for that period. The proceedings under Section 74 of the MPGST Act 2017 read with Section 74 of the CGST Act 2017 were closed based on information on record, and the company stated that this development has no financial or operational impact on its activities.

The withdrawal of the FY 2019-20 demand removes a significant potential tax liability overhang for HEG, easing concerns that had arisen after the original notice covering FY 2019-20 and FY 2020-21 was disclosed in November 2025. While the order pertains only to the 2019-20 period, the decision provides regulatory relief and clarity on the company’s export-related IGST refunds, which is likely to be viewed positively by investors and other stakeholders monitoring its compliance risk profile.

More about HEG Limited

HEG Limited is an Indian manufacturer in the graphite electrodes and related carbon products industry, primarily serving steel producers and other energy-intensive sectors. Listed on both BSE and NSE, the company operates major facilities in Madhya Pradesh and is part of the LNJ Bhilwara Group, giving it a significant presence in the domestic and export markets for industrial graphite solutions.

The company’s operations are closely linked to global steel cycles and trade flows, making regulatory clarity around indirect taxes and export-related refunds an important factor for its financial predictability.

Average Trading Volume: 169,471

Technical Sentiment Signal: Buy

Current Market Cap: 95.92B INR

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