Zydus Faces Rs 1.18 Crore GST Blow as Appellate Authority Upholds Tax Demand, Penalty
New Delhi: Zydus Lifesciences has said that the Appellate Authority of the Central Goods and Services Tax Appeals Commissionerate, Chandigarh, has upheld a GST demand and penalty order against the company related to alleged wrongful input tax credit claims.
The appeal order pertains to a demand of Rs 1.71 million and a penalty of Rs 10.12 million for the period between July 2017 and March 2021. The matter relates to various issues identified during a GST audit, according to the company’s regulatory filing.
Zydus Lifesciences stated that it had earlier challenged the original order before the appellate authority after receiving the demand order in January 2025. However, the appellate authority has now upheld both the demand and the penalty amount.
According to the company, the allegations relate to excess or wrongful input tax credit availed during the audit period. The order was received from the appellate authority on May 11, 2026.
As per the Zydus Lifesciences regulatory disclosure, the company plans to file a second appeal before the Goods and Services Tax Appellate Tribunal (GSTAT) against the latest order.
The company further clarified that the matter is not expected to have any material financial impact on its operations or overall business activities.
