GST Penalty Dropped for Subsidiary of Zydus Lifesciences Ltd
Zydus Lifesciences Ltd reports that German Remedies Pharmaceuticals Private Limited (GRPPL), a wholly owned subsidiary of Zydus Healthcare Limited and a subsidiary of the company, has successfully had a penalty order dropped following an appeal. The penalty related to the alleged excess availment of Input Tax Credit for the financial year 2018-19.The company initially informed stakeholders that GRPPL had received a Demand Order-In-Original pertaining to a penalty of Rs. 1.66 million for the financial year 2018-19.
GRPPL subsequently filed an appeal against this order before the Office of the Commissioner, Central GST, Appeal Ahmedabad Commissionerate.
The company confirmed that the Office of the Commissioner, Central GST, Appeal Ahmedabad Commissionerate, issued an Appeal Order confirming that the entire penalty amount of Rs. 1.66 million had been dropped. The company received the Appeal Order dated April 1, 2026, on April 15, 2026.
The details of the successful appeal and the related actions are provided below:
| Particulars | Details |
|---|---|
| Authority | The Office of Commissioner, Central GST, Appeal Ahmedabad Commissionerate. |
| Nature of Action | The appeal order confirmed that the penalty amount under section 74 of the CGST Act for the financial year 2018-19 was dropped. |
| Order Details | The Appeal Order was dated April 1, 2026, and received by the company’s authorized officials on April 15, 2026. |
| Violation Alleged | N.A. |
| Financial Impact | Based on the appellate authority dropping the entire penalty of Rs. 1.66 million, the company evaluated that there is no material impact on the financials, operations, or other activities of GRPPL or Zydus Lifesciences Ltd. |
ZYDUSLIFE Stock Price Movement
On Wednesday, Zydus Lifesciences Limited shares rallied 1.47% to close at ₹936.05, up ₹13.60 for the session. Trading saw the stock test its day's lows at ₹919, finishing robustly below its day's high of ₹938.Source:
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