Zydus Wellness Arm Faces Rs 6.3 Million GST Penalty Over ITC Irregularities
New Delhi: Zydus Wellness Limited has informed that its wholly owned subsidiary, Zydus Wellness Products Limited (ZWPL), has received a GST order imposing a penalty of Rs 6.30 million along with applicable interest for alleged irregularities in input tax credit reversal.
The company disclosed that the order was issued by the Assistant Commissioner, Division-II, CGST Commissionerate, Ghaziabad, Uttar Pradesh, under provisions of the Central Goods and Services Tax (CGST) Act, 2017. The action pertains to the financial years 2019-20 and 2020-21.
According to the disclosure, the authority has alleged that ZWPL made a lesser reversal of input tax credit under Section 17 of the CGST Act, read with Rule 42 of the CGST Rules, 2017. Based on this, a penalty has been imposed under Section 74(9) read with Section 122(2)(b) of the Act.
The company received the order on March 29, 2026, at 5:04 PM. Zydus Wellness clarified that the order is appealable and the subsidiary is currently evaluating the next course of action in response to the development.
Importantly, the company stated that there is no immediate impact on its financial, operational, or other business activities due to the order. The potential financial impact will be limited to the final tax liability, along with any applicable interest and penalty, subject to further assessment and legal proceedings.
Zydus Wellness emphasized that it will take appropriate steps in line with regulatory provisions and continue to monitor the situation closely.
