Zydus Lifesciences Slapped Rs.3.28 Cr GST Demand
Zydus Lifesciences Ltd has received a Goods and Services Tax (GST) demand order amounting to Rs.3.28 crore from the Gujarat State Tax authorities. The demand pertains to the financial year 2019–20.
The order has been issued under Section 74 of the CGST Act, 2017, which deals with cases involving alleged tax short payment or wrongful availment of input tax credit (ITC). The total demand includes tax along with applicable interest and penalty.
According to the company’s regulatory filing, the demand arises primarily on account of alleged ineligible input tax credit claimed by the company during the relevant period.
Zydus Lifesciences has stated that it has strong grounds to contest the matter and intends to file an appeal against the order before the appropriate appellate authority. The company is confident of a favorable outcome based on the merits of the case and past judicial precedents.
The company further clarified that the said order is not expected to have any material impact on its financial position or operations, and it is treating the matter as part of ongoing litigation.
