Zydus Subsidiary Receives Rs 9 Million Tax Demand, To Challenge Order
New Delhi: Zydus Lifesciences Limited has informed that its wholly owned subsidiary, Zydus VTEC Limited (ZVTEC), has received a demand order from tax authorities involving a demand and penalty of Rs 9 million each over alleged inadmissible input tax credit claims, with the company planning to challenge the order.
According to the company’s disclosure dated May 5, 2026, the Order-In-Original was issued by the Deputy Commissioner of CGST and Central Excise, Ahmedabad North Commissionerate, under Section 74 of the CGST Act, 2017. The order pertains to the period from September 2020 to March 2023 and involves alleged wrongful availment of input tax credit.
The tax demand and penalty imposed amount to ₹9 million each in connection with the alleged contravention under GST provisions.
Zydus Lifesciences clarified that the issue relates to alleged inadmissible input tax credit claims under the CGST Act, 2017. However, the company expressed confidence in its position, stating that it has strong merits in the case and intends to file an appeal against the order.
Citing past precedents from High Courts and the Supreme Court on similar matters, the company indicated that it expects a favourable outcome upon appeal.The company further stated that there is no material financial impact on either Zydus VTEC Limited or Zydus Lifesciences Limited arising from the order.
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