Receipt of demand Order-In-Appeal from Appellate Authority, Central Goods and Services Tax Appeals Commissionerate, Chandigarh.
ZYDUSLIFE · price
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Zydus Lifesciences has received an Order-In-Appeal from the GST Appellate Authority, Chandigarh, which upholds a demand of Rs. 1.71 million plus a penalty of Rs. 10.12 million. This pertains to the period July 2017 to March 2021 and relates to alleged excess or wrongful input tax credit claimed by the Company during a GST audit. The original penalty was imposed through an Order-In-Original dated January 25, 2025, and the Company had filed an appeal against it. However, the appeal has been dismissed, maintaining the original demand and penalty amounts. The Company has stated it intends to file a second appeal before the GSTAT (Goods and Services Tax Appellate Tribunal). The filing also notes a delay in submission due to the concerned person being on medical leave.
The Company states there is no material financial impact, though the total liability including penalty amounts to Rs. 11.83 million. The stock may see minor negative sentiment as investors digest the upheld penalty, but the Company's continued legal recourse signals confidence in its position.