VA Tech Wabag Limited has received a GST assessment order from the Office of the Superintendent of Central Tax, GST Commissionerate, Bengaluru. The company disclosed this development through a regulatory filing under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 on December 31, 2025.

GST Assessment Order Details

The order pertains to an assessment undertaken following a routine GST compliance audit under Section 65 of the CGST Act, 2017. The assessment covers an extended period spanning multiple financial years.

Financial Impact Breakdown

The GST assessment order demands payment across multiple components including basic tax, interest, and penalty. The total demand amount is significantly lower than initially reported.

Company's Response and Legal Action

VA Tech Wabag has indicated it will pursue appropriate legal remedies against the GST assessment order. The company plans to file an appeal with the appropriate authority challenging the order issued by the GST Commissionerate.

The company has assessed that there is no material impact on its financial, operations, or other activities due to this order. This suggests the company believes it has strong grounds to contest the assessment made by the GST authorities.

Regulatory Compliance

The disclosure was made in compliance with SEBI regulations, specifically Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015. The company also referenced SEBI circular SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, in its filing.

Company Secretary and Compliance Officer Anup Kumar Samal signed the regulatory filing, ensuring proper compliance with disclosure requirements for listed entities.

VA Tech Wabag shares gained 1% on Monday, trading at ₹1,289.80, after the company announced it has secured a repeat large order from the Saudi Water Authority. The engineering, procurement and construction (EPC) contract is for an advanced technology brackish water reverse osmosis (BWRO) plant with a capacity of 50 million litres per day at Aljouf in Saudi Arabia.

Project Details and Timeline

The company has received a letter of award for the comprehensive water treatment facility, which will be designed, supplied, constructed and commissioned over a 14-month period. The following table outlines the key project specifications:

Advanced Technology Implementation

The facility will treat raw water supplied from bore well fields containing rare elements, requiring robust pre-treatment processes. The treatment system will utilize ceramic membrane technology followed by micron cartridge filtration and reverse osmosis to ensure long-term reliability and sustainable water supply for the region.

VA Tech Wabag classifies international orders in the $30 million to $75 million range as "large" orders. The contracting formalities will commence following the letter of award, with the effective execution date to be announced after contract signing.

Strategic Positioning

"The award reflects Saudi Arabia's proactive adoption of next-generation water treatment technologies and further reinforces VA Tech Wabag's leadership in advanced technology solutions such as BWRO, SWRO and recycle-and-reuse systems," said Phani Sathish Kadiyala, the company's country manager and branch GM for Saudi Arabia.

This development follows the company being declared the preferred bidder for the Hadda ISTP project in Saudi Arabia last week, demonstrating continued momentum in the Middle Eastern market.

Market Performance

Despite the positive news, VA Tech Wabag shares remain down 23% year-to-date. However, the repeat order from the Saudi Water Authority reinforces the company's competitive position in securing large-scale water infrastructure contracts in key international markets.