Waaree Renewable Receives GST Assessment Order of ₹1.24 Lakh for FY22

Waaree Renewable Technologies Limited has disclosed receiving a GST assessment order from tax authorities. The renewable energy company received formal notification on December 22, 2023, regarding the assessment order issued by Maharashtra tax authorities.

GST Assessment Details

The Assistant Commissioner of State Tax (INV-01), Investigation-A, Mumbai has issued an assessment order in Form GST DRC-07 under multiple tax provisions. The order covers the tax period from April 2021 to March 2022, representing the company's FY22 operations.

Parameter	Details
Assessment Amount	₹1.24 lakh
Tax Period	April 2021 to March 2022
Issuing Authority	Assistant Commissioner of State Tax, Mumbai
Order Form	GST DRC-07
Receipt Date	December 22, 2023 at 06:23 PM (IST)

Nature of Tax Violation

The assessment order stems from observations made during the course of investigation by tax authorities. The primary issue identified relates to input tax credit management and compliance with GST provisions.

The specific violation involves:

Failure to reverse common input tax credit used for exempt supply
Non-compliance with proportionate reversal requirements relative to total turnover
Issues identified during the investigation period covering FY22

Legal Framework and Provisions

The assessment order has been issued under tax legislation covering multiple jurisdictions. The order invokes Section 73 of the Central Goods and Services Tax Act, 2017, along with corresponding provisions under The Maharashtra Goods Services Tax Act, 2017. Additionally, the order references Section 20 of the Integrated Goods Services Tax Act, 2017.

Financial Impact Assessment

Waaree Renewable Technologies has provided an impact analysis of the assessment order on its business operations and financial position.

Impact Category	Assessment
Financial Impact	Limited to ₹1.24 lakh
Materiality	Not material in nature
Operational Impact	No expected adverse impact
Financial Position	No material adverse effect expected

Company Response Strategy

The company has outlined its approach to address the GST assessment order through appropriate legal channels. Waaree Renewable Technologies plans to file an appeal against the order related to input tax credit reversal.

The company's response strategy includes:

Filing an appeal against the assessment order
Adhering to prescribed timelines for legal proceedings
Ensuring compliance with regulatory disclosure requirements
Maintaining transparency with stakeholders through proper communication channels

Regulatory Compliance and Disclosure

The disclosure has been made in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has also complied with SEBI circular SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2023, ensuring regulatory compliance.

Waaree Renewable Technologies, a subsidiary of Waaree Energies Limited, operates in the renewable energy sector and maintains its corporate headquarters in Mumbai. The company has stated that this information will be made available on its official website for stakeholder access and transparency.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
0.0%	+2.51%	-8.77%	-1.88%	+13.21%	+13.21%

Waaree Renewable Technologies Limited (WRTL) has successfully secured shareholder approval for a significant amendment to its Employee Stock Option Plan 2022 (Waaree RTL ESOP 2022). The company conducted a postal ballot voting process from October 16 to November 14, resulting in an overwhelming endorsement of the proposed changes.

Voting Results

The special resolution to amend the ESOP 2022 received strong support from shareholders across all categories:

Category	Votes in Favor	Votes Against	% in Favor
Promoter and Promoter Group	77,550,245	0	100.00%
Public Institutions	1,161,096	121,551	90.52%
Public Non-Institutions	1,163,171	1,795	99.85%
Total	79,874,512	123,346	99.85%

Key Highlights

Total Participation: 76.74% of the company's outstanding shares participated in the voting process.
Overwhelming Approval: 99.85% of the total valid votes cast were in favor of the amendment.
Institutional Support: Despite some opposition, 90.52% of participating public institutional shareholders backed the resolution.
Retail Confidence: 99.85% of votes from public non-institutional shareholders supported the amendment, indicating strong retail investor confidence.

Implications

The approved amendment to the Waaree RTL ESOP 2022 may have significant implications for the company's employee compensation structure and retention strategies. Employee stock option plans are often used as a tool to align employee interests with those of the company and its shareholders, potentially boosting motivation and long-term commitment.

Compliance and Transparency

WRTL conducted the voting process in compliance with the Companies Act, 2013, and SEBI regulations. The company appointed Shruti Somani, a practicing Company Secretary, as the scrutinizer to ensure a fair and transparent voting process.

The successful passage of this resolution demonstrates strong shareholder alignment with the company's employee incentive strategies, which could potentially contribute to WRTL's long-term growth and success in the renewable energy sector.