Zydus Wellness Subsidiary Receives GST Penalty Order
Zydus Wellness Limited announced on March 30, 2026, that its wholly-owned subsidiary, Zydus Wellness Products Limited (ZWPL), has received a penalty order from the Office of The Assistant Commissioner, Division-II, CGST Commissionerate, Ghaziabad, Uttar Pradesh.The order, received on March 29, 2026, alleges less reversal of input tax credit and imposes a penalty of ₹ 6.30 million along with applicable interest for the financial years 2019-20 and 2020-21. The penalty is based on the provisions of section 74(9) read with section 122(2)(b) of The Central Goods and Service Tax Act, 2017.
ZWPL intends to appeal the order and will assess the next course of action. The company stated that the order is not expected to have a material impact on its financial, operational, or other activities, with any financial impact limited to the final tax liability, interest, and penalty, if any.
| Sr. No. | Particulars | Details |
|---|---|---|
| 1 | Name of the Authority | The Assistant Commissioner, Division-II, CGST Commissionerate, Ghaziabad, Uttar Pradesh. |
| 2 | Nature and details of the action(s) taken, initiated or order(s) passed | Imposed penalty of ₹ 6.30 million along with applicable interest, for financial year 2019-20 and 2020-21 as per the provisions of section 74(9) read with section 122(2)(b) of the CGST Act. |
| 3 | Date of receipt of direction or order, including any ad-interim or interim orders, or any other communication from the authority | March 29, 2026 at 5:04 p.m. |
| 4 | Details of the violation(s)/ contravention(s) committed or alleged to be committed | Alleged less reversal of input tax credit under section 17 of CGST Act read with rule 42 of CGST rules. |
| 5 | Impact on financial, operation or other activities of the listed entity, quantifiable in monetary terms to the extent possible | The order is currently appealable and ZWPL will make an assessment for next course of action. There is no impact on financial, operation or other activities of the Company / ZWPL due to this order. The impact will be limited to the final tax liability as may be ascertained alongwith interest and penalty, if any. |
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