Va Tech Wabag Limited has secured a favorable rectification order from the Office of the Deputy Commissioner, GST Commissionerate, Uttar Pradesh, substantially reducing a previously issued tax demand. The order dated June 19, 2026, pertains to the financial year 2019-20 and addresses allegations regarding excess Input Tax Credit (ITC) claims under Section 74 of the CGST Act. The company confirmed that the reduced liability will be duly discharged.

The development follows an earlier intimation on March 06, 2026, regarding the original demand of INR 43,73,666. The authorities have now quashed the original demand, lowering it to INR 1,97,880. The revised demand comprises basic tax, interest, and penalty components. The company stated there is no material impact on its financial, operations, or other activities due to this order.

Breakdown of Rectified Demand

The rectification order details the specific components of the reduced tax liability. The total amount of INR 1,97,880 includes charges for basic tax, accumulated interest, and penalty.

The intimation was submitted to the exchanges in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Anup Kumar Samal, Company Secretary & Compliance Officer, signed the disclosure.

VA TECH WABAG has secured a large Design & Build contract for the proposed Ajman Sewage Biorefinery Plant – Phase 3 in the United Arab Emirates from Ajman Sewerage (Private) Company Limited. The project, classified as a large international order valued between USD 30 to 75 million, marks the company's strategic entry into the UAE market. The order strengthens VA TECH WABAG's presence in the GCC region and positions it to pursue larger infrastructure opportunities in the Middle East.

Project Structure and Timeline

The project will be executed through a consortium arrangement with VA TECH WABAG serving as the consortium leader and is scheduled for completion within a 24-month period. The scope encompasses the design, engineering, procurement, and construction of a 60 MLD Sewage Treatment Plant, including inlet works, primary and secondary treatment systems, and comprehensive sludge management facilities such as digesters, gas holders, scrubbers, and power generation systems.

Technical Scope

The plant will incorporate advanced mechanical and biological treatment processes based on the Activated Sludge Process (ASP). Tertiary treatment will be facilitated through disc filtration systems. Additionally, the scope includes odor control systems and disc filters to ensure compliance with guaranteed treated effluent quality.

Strategic Significance

Rohan Mittal, Head – Strategy and Business Growth – GCC, stated that the project represents an important milestone in the company's Middle East growth journey. He noted that the UAE's focus on water security and infrastructure resilience creates a strong long-term opportunity landscape, enabling VA TECH WABAG to participate meaningfully in the region's next phase of growth.

Order Classification Framework

The order classification follows the company's defined thresholds for international projects. The table below outlines the classification bands: