Zydus Lifesciences Limited has provided an update regarding a tax demand order issued by the Appellate Authority. The authority has upheld a GST demand of Rs. 1.71 million and a penalty of Rs. 10.12 million, covering the period from July 2017 to March 2021. The company maintains that there is no material financial impact on its operations and has announced its intention to pursue a second appeal before the Goods and Services Tax Appellate Tribunal (GSTAT).
Details of the Tax Order
Following an initial demand notice issued in January 2025, Zydus Lifesciences filed an appeal with the Appellate Authority for Central Goods and Services Tax. The appellate body recently upheld the findings of the original order, confirming a total liability consisting of a Rs. 1.71 million tax demand and a Rs. 10.12 million penalty. The order pertains to allegations of excess or wrongful input tax credit utilized by the company between July 2017 and March 2021.
Management Stance and Next Steps
The company received the formal communication regarding the appeal decision on May 11, 2026. Despite the ruling by the Appellate Authority, Zydus Lifesciences has confirmed that the financial outcome has no material impact on its overall financial health or business operations. Moving forward, the company is preparing to file a second appeal with the Goods and Services Tax Appellate Tribunal (GSTAT) to contest the matter further.
Source: BSE
