Zydus Lifesciences Limited has informed the Exchange about General Updates
ZYDUSLIFE · price
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Zydus VTEC Limited (ZVTEC), a wholly owned subsidiary of Zydus Lifesciences, received a demand Order-In-Original from the Deputy Commissioner of CGST & Central Excise, Ahmedabad North Commissionerate. The order pertains to alleged availment of inadmissible Input Tax Credit for the period September 2020 to March 2023 under the CGST Act, 2017. The demand and penalty amount is Rs. 9.00 million each. The company firmly believes the order has strong merits and intends to appeal against it. The company states there is no material financial impact on either ZVTEC or the parent company.
The Rs. 18 million total demand (Rs. 9 million penalty + Rs. 9 million demand) is relatively small for Zydus Lifesciences. The company intends to appeal, and based on past High Court and Supreme Court judgments, expects a favourable outcome. Minimal direct impact on shareholders expected.