Zydus Wellness Products Limited (ZWPL), a wholly-owned subsidiary of Zydus Wellness Limited, has been served with a Goods and Services Tax (GST) demand of ₹56.33 crore, including applicable interest and penalties. The Directorate General of Goods and Services Tax Intelligence (DGGI), Surat Zonal Unit, issued the notice, which pertains to transactions from the pre-acquisition period prior to January 30, 2019.
The notice is linked to the acquisition of intellectual property rights (IPR) by Heinz India Private Limited from Heinz Italia S.P.A. in the pre-acquisition period. Post-acquisition, Heinz India Private Limited merged with ZWPL, transferring its liabilities and responsibilities to ZWPL. The GST demand arises from alleged non-compliance during this period.
ZWPL has stated that it believes there is strong merit in its case. The company is currently reviewing the details of the notice and evaluating the appropriate course of action. Importantly, ZWPL has highlighted that the demand relates to a period before the acquisition and that the final tax liability, if any, is indemnifiable by Heinz Italia S.P.A., as per the acquisition agreement.
ZWPL has reassured stakeholders that this demand will not affect its financial, operational, or other activities. The company remains confident about its position and will take necessary steps to address the matter in compliance with regulatory requirements.
