Zydus Healthcare Limited (ZHL), a subsidiary of Zydus Lifesciences, has received a demand order related to dis-allowed Input Tax Credit (ITC) and short payment of tax under Reverse Charge Mechanism (RCM). The demand pertains to financial years April 2018 to March 2023. Zydus intends to challenge the order.
Demand Order Details
Zydus Healthcare Limited (ZHL) has received a demand order pertaining to dis-allowed Input Tax Credit (ITC) and short payment of tax under Reverse Charge Mechanism (RCM) for the financial years April 2018 to March 2023.
Key Aspects of the Demand
The demand order was issued by the Assistant Commissioner of CGST, Cuttack-I Division, Odisha. The specifics involve:
- Dis-allowed ITC and short payment of tax under RCM: Amounting to ₹2.17 million, plus applicable interest, and a penalty of ₹2.17 million.
The company received the order on October 16, 2025, at 12.06 p.m.
Company’s Response
ZHL intends to challenge the Order by filing an appeal, with the company stating that there is no material financial impact on ZHL or the Company.
Source: BSE
