Zydus Wins GST Appeal, Rs 41.9 Lakh Demand Reduced to Rs 0.44 Lakh
Ahmedabad: Zydus Lifesciences Limited has informed stock exchanges that its wholly owned subsidiary, Zydus Healthcare Limited (ZHL), has received favorable appellate orders resulting in a substantial reduction in GST-related demands and penalties pertaining to the financial years 2018-19 and 2019-20.
According to the company’s regulatory filing, the matter was related to Input Tax Credit (ITC) claims for the respective financial years. Earlier, ZHL had received Demand Orders-In-Original from GST authorities, imposing tax demands along with penalties. However, following appeals before the Appellate Additional Commissioner of State, Chhattisgarh, the majority of the disputed amounts have now been dropped.
For the financial year 2018-19, the original demand stood at Rs 28.7 lakh, including a penalty of Rs 1.6 lakh. Following the appellate order, the demand has been reduced to only Rs 0.24 lakh, including a penalty of Rs 0.20 lakh. Similarly, for FY 2019-20, the original demand of Rs 13.2 lakh, including a penalty of Rs 0.9 lakh, has been reduced to Rs 0.20 lakh, including a penalty of Rs 0.20 lakh.
The company stated that these favorable orders have resulted in a significant reduction in the financial liability arising from the GST disputes. The development reflects a positive outcome for the subsidiary in its challenge against the earlier tax demands.
Zydus Lifesciences has requested stock exchanges to bring the information to the notice of investors and members of the exchanges. The filing was signed by Dhaval N. Soni, Company Secretary and Compliance Officer of Zydus Lifesciences Limited.
