Va Tech Wabag has received a Goods and Services Tax (GST) order demanding ₹6.47 Cr following the rejection of its rectification application for the financial year 2019-20. The order, dated June 19, 2026, was issued by the Office of the Principal Commissioner of Central Tax, Bengaluru East Commissionerate, Bengaluru. The authority rejected the company's application to remedy errors apparent on the face of the record regarding an assessment conducted under Section 73 of the CGST Act, 2017.

The demand comprises basic tax of ₹5,71,22,863, interest of ₹18,37,662, and a penalty of ₹57,27,163. The company disclosed that it will pursue appropriate legal remedies, which include filing an appeal with the appropriate authority against the said order. The intimation was submitted to the exchanges in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The company stated that there is no material impact on the financial, operations, or other activities of the listed entity. The assessment period in question pertains to FY 2019-20. The order was received on June 19, 2026.

Breakdown of GST Demand

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.