VA TECH WABAG announced that the Hon’ble High Court of Karnataka has granted an interim stay on two disputed Goods and Services Tax (GST) orders. These orders pertained to alleged wrong classification resulting in a tax liability of ₹1.20 crore, plus penalty and interest, and an assessment demand of ₹23.21 lakh from a routine audit. The stay effectively halts the operation and implementation of the original orders until further direction from the Court.
Litigation Update on GST Demands
VA TECH WABAG LIMITED has provided an update regarding previously intimated Goods and Services Tax (GST) matters. The Company was facing two primary demands originating from the GST Commissionerate, Bengaluru, following earlier disclosures on December 31, 2025.
Details of Disputed Demands
- Alleged wrong classification leading to a short payment demand of GST, applicable interest, and penalty, totaling INR 1,20,38,078/-.
- An assessment resulting from a routine GST compliance Audit covering the period FY 2018-19 to 2022-23, amounting to INR 23,21,411/-.
Interim Relief from High Court
In response to the writ petitions filed by the Company challenging these Orders-in-Original, the Hon’ble High Court of Karnataka issued orders on February 11, 2026. The Court has granted an interim stay on both contested demands. Consequently, the operation and implementation of these Orders-in-Original are officially suspended pending the subsequent orders of the Hon’ble High Court.
The Company confirmed that it will continue to update stakeholders regarding any further material developments in this ongoing matter in due course.
Source: BSE
