VA Tech Wabag Limited has informed the Exchange about Action(s) initiated or orders passed
WABAG · price
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Awaiting price reaction for this filing.
VA Tech Wabag has received an order from the Office of the Assistant Commissioner of Central Tax, GST Commissionerate, Bangalore on December 30, 2025. The tax authority has alleged wrong classification and consequential short payment of GST on Works Contract services, demanding about ₹1.20 crore (INR 1,20,38,078) in unpaid tax. An equal amount of ₹1.20 crore has been imposed as penalty, along with applicable interest, under Section 74(1) of the CGST/KGST Act, 2017. The total potential exposure is around ₹2.40 crore plus interest. The company has stated it will file an appeal with the appropriate authority and that there is no material impact on its financial position or operations.
The demand is small relative to the company's size and management has clarified there is no material financial impact, so the stock reaction is likely to be muted. However, the equal-to-tax penalty under Section 74(1) is aggressive and the appeal outcome will determine the final hit to shareholders.