Zydus Lifesciences Limited has received an Appeal Order from the Appellate Authority, Central Goods and Services Tax Appeals Commissionerate, Chandigarh, regarding a GST audit dispute. The order, received on May 11, 2026, upholds the previously imposed demand and penalty. The company had initially informed the exchanges about a Demand Order-In-Original on January 25, 2025, which pertained to issues arising from a GST audit for the period between July 2017 and March 2021.
Details of the Appeal Order
The Appeal Order was passed under section 107 of the CGST Act, 2017. It confirms the demand of Rs. 1.71 million and the penalty of Rs. 10.12 million. The authority alleged that the company availed excess or wrongful input tax credit. The table below summarizes the key details of the order:
| Sr. No. | Particulars | Details |
| 1. | Name of the authority | Appellate Authority, Central Goods and Services Tax Appeals Commissionerate, Chandigarh |
| 2. | Nature of action | Appeal Order passed under section 107 of CGST Act, 2017 for demand and penalty |
| 3. | Date of receipt | 14:24 p.m. on May 11, 2026 |
| 4. | Violation details | Alleged excess / wrongful input tax credit availed by the Company |
| 5. | Financial impact | The Company intends to file second appeal before GSTAT. No material financial impact. |
Company Response and Future Action
In response to the order, Zydus Lifesciences stated that it intends to file a second appeal against the Appeal Order before the Goods and Services Tax Appellate Tribunal (GSTAT). The company clarified that there is no material financial impact on its operations resulting from this order. The disclosure regarding the appeal was submitted with a delay, which the company attributed to the concerned person being on medical leave.
