Zydus Lifesciences Limited has announced that its wholly owned subsidiary, Zydus VTEC Limited (ZVTEC), has received an order from the Deputy Commissioner of CGST & Central Excise. The authority has demanded Rs. 9.00 million in tax and an equal amount in penalties, totaling Rs. 18.00 million, pertaining to alleged inadmissible Input Tax Credit claims for the period from September 2020 to March 2023. The company plans to appeal the decision.
Details of the Tax Order
The order, received by ZVTEC on May 4, 2026, concerns the alleged incorrect availment of Input Tax Credit. The assessment covers the period spanning September 2020 through March 2023. Under the order, the company is facing a tax demand of Rs. 9.00 million alongside a corresponding penalty of Rs. 9.00 million.
Management Stance and Financial Impact
Zydus Lifesciences has stated that it maintains a strong case regarding the merits of its position. Based on past precedents established by High Court and Supreme Court judgments, the management remains optimistic about receiving a favorable outcome upon appeal.
Regarding the financial health of the organization, the company has confirmed that there is no material financial impact on either ZVTEC or Zydus Lifesciences Limited. The company will continue to defend its position through the formal legal appeal process.
Source: BSE
