Updates on GST related matters of the Company
WABAG · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
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VA Tech Wabag informed exchanges that the Karnataka High Court has granted an interim stay on two GST orders previously received by the company from the GST Commissionerate, Bengaluru. The first order related to alleged wrong classification of Works Contract services with a demand of about ₹1.20 crore plus interest and an equal penalty of ₹1.20 crore. The second was a routine GST audit assessment of about ₹23.21 lakh covering FY 2018-19 to FY 2022-23. The company had challenged both orders by filing writ petitions, and the court has now stayed their operation until further hearing. The company will update on further developments in due course.
This is a relief for shareholders as the GST demand totaling roughly ₹2.64 crore (including penalty) is on hold for now, removing an immediate cash outflow risk. However, the matter remains sub judice and could revive if the court ultimately rules against the company, so it is a temporary reprieve rather than a final resolution.