Zydus Wellness subsidiary receives GST demand of Rs 56.33 crore

Written by Ruchika Sharma Published On 2024-12-30T13:05:44+05:30 | Updated On 30 Dec 2024 1:05 PM IST

Ahmedabad: Zydus Wellness Products Limited, a wholly owned subsidiary of Zydus Wellness, has received a GST demand of Rs 56.33 crores along with applicable interest and penalty from the tax authority.

The intimation alleged that GST was payable in relation to acquisition of intellectual property rights from Heinz Italia S.P.A. by Heinz India Private Limited, now merged with ZWPL.

"Zydus Wellness Products Limited (“ZWPL”), a wholly owned subsidiary company, has received an intimation from The Directorate General of Goods and Services Tax Intelligence, Surat Zonal Unit under section 74(5) of the Central Goods and Services Tax Act, 2017 (“the Act”) alleging GST demand of Rs 56.33 crores along with applicable interest and penalty," the Company stated in a filing.

"ZWPL believes that there is a strong merit in the case and ZWPL is evaluating the next steps based on detailed review of the intimation," the filing added.

The period covered by the order relates to preacquisition period prior to January 30, 2019.

Read also: HC relief to Zydus Glucon-D, restrains Cipla from using trademarks Gluco-C, Gluco-D

Due to this order, there is no impact on financial, operation or other activities of the Company / ZWPL.

The impact will be limited to the final tax liability as may be ascertained alongwith interest and penalty, if any and is eligible for indemnification by Heinz Italia S.P.A.

With the launch of India’s first zero calorie replacement of sugar, called Sugar Free, in 1988, Zydus Wellness began its journey as India’s consumer Wellness Company. Since then, the company grown into a larger business, spanning the entire wellness spectrum with seven power brands - Complan, Sugar Free, I'm lite, Glucon-D, Everyuth, Nycil and Nutralite.

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Ruchika Sharma

Ruchika Sharma joined Medical Dialogue as an Correspondent for the Business Section in 2019. She covers all the updates in the Pharmaceutical field, Policy, Insurance, Business Healthcare, Medical News, Health News, Pharma News, Healthcare and Investment. She has completed her B.Com from Delhi University and then pursued postgraduation in M.Com. She can be contacted at editorial@medicaldialogues.in Contact no. 011-43720751