VA TECH WABAG has received a GST demand order dated March 06, 2026, from Uttar Pradesh authorities concerning an alleged excess Input Tax Credit (ITC) claim during FY 2019-20. The total demand, including basic tax, interest, and penalty under Section 74 of the CGST Act, amounts to INR 43,73,666. The company intends to pursue all appropriate legal remedies, including filing an appeal against this order.
GST Authority Issues Demand Order
VA TECH WABAG LIMITED announced the receipt of a significant demand order from the Office of the Deputy Commissioner, GST Commissionerate, Uttar Pradesh. The order, dated March 06, 2026, pertains to allegations of excess Input Tax Credit (ITC) claimed by the Company for the Financial Year 2019-20.
Breakdown of Financial Liability
The demand order was issued under Section 74 of the CGST Act and mandates payment covering three components, totaling INR 43,73,666:
- Basic Tax: INR 13,87,364/-
- Interest: INR 15,98,938/-
- Penalty: INR 13,87,364/-
- Total Demand: INR 43,73,666/-
Company Response and Future Action
The Company maintains its position and confirms that it will be utilizing all available legal remedies to contest this assessment. These remedies inter-alia include filing an appeal with the appropriate Authority against the finalized order.
The management has assessed the immediate impact and stated that there is no material impact on the financial position, operations, or other activities of the listed entity due to this demand notice at this preliminary stage.
Source: BSE
