Zydus Wellness Products Limited (ZWPL), a subsidiary, has received an Order imposing a penalty of ₹6.30 million plus applicable interest for financial years 2019-20 and 2020-21. The order alleges less reversal of Input Tax Credit (ITC) under the CGST Act. While the order is currently appealable, ZWPL will assess its next steps. The company stated that there is currently no financial impact beyond the potential final tax liability, interest, and penalty.
Tax Authority Imposes Penalty on Subsidiary
Zydus Wellness Products Limited (ZWPL), a wholly owned subsidiary, has been served with an Order in Form GST DRC-07 by The Assistant Commissioner, Division-II, CGST Commissionerate, Ghaziabad, Uttar Pradesh. The action taken relates to the alleged less reversal of input tax credit (ITC) concerning Section 17 of The Central Goods and Service Tax Act, 2017 (CGST Act) and Rule 42 of the CGST rules.
Details of Financial Liability
The authority has imposed a penalty totaling ₹6.30 million. This penalty, along with applicable interest, covers the financial years 2019-20 and 2020-21, as stipulated under Section 74(9) read with Section 122(2)(b) of the CGST Act.
The official communication regarding the order was received on March 29, 2026, at 5:04 p.m.
Company Assessment and Appeal Status
The announcement confirms that the order is currently appealable. ZWPL management will proceed to make an assessment to determine the appropriate next course of action.
In terms of immediate business operations, the company noted that there is no impact on financial, operational, or other activities of the Company / ZWPL due to this specific order at this juncture. The financial impact will ultimately be limited to the final tax liability that may be ascertained, including any related interest and penalty charges.
Source: BSE
