Zydus Healthcare faces GST penalty of INR 4.27m

Zydus Lifesciences announced that its wholly-owned subsidiary, Zydus Healthcare Limited ("ZHL"), has received a demand order (O-I-O) for fiscal year 2020-21 concerning issues related to Input Tax Credit and tax liability from GST returns. The order, issued by the Additional Commissioner of CGST & CE, Daman Commissionerate, imposes a penalty of ₹4.27 million on ZHL under section 74 of the CGST Act, 2017. Zydus Lifesciences intends to challenge the order by filing an appeal and states that it anticipates no material financial impact on ZHL or the company as a result of this demand.