Zydus Wellness Limited, through its wholly owned subsidiary Zydus Wellness Products Limited (ZWPL), has been issued a penalty of ₹6.30 million by the Office of the Assistant Commissioner, Division-II, CGST Commissionerate, Ghaziabad. The penalty pertains to alleged discrepancies in the reversal of input tax credit under the Central Goods and Service Tax Act, 2017, for the financial years 2019-20 and 2020-21.
The order was received on March 29, 2026, and includes applicable interest as per the provisions of section 74(9) read with section 122(2)(b) of the CGST Act. The issue arises from an alleged less reversal of input tax credit, which is governed by section 17 of the CGST Act and rule 42 of the CGST rules.
Zydus Wellness Limited has indicated that the order is currently appealable and that ZWPL will assess the situation to determine the next course of action. The company has clarified that there is no immediate impact on its financial, operational, or other activities due to this penalty. The final impact will depend on the eventual tax liability, including any interest and additional penalties that may be determined.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).