Zydus Lifesciences Subsidiary GST Demand Partially Dropped

Date: June 9, 2026

Regulatory / Legal Update

Zydus Healthcare Limited (ZHL), a wholly owned subsidiary of Zydus Lifesciences Limited, has received favorable orders from the Appellate Additional Commissioner of State, Chhattisgarh regarding GST demand matters.

Background

• The company had previously informed about Demand Orders-In-Original received by ZHL:
• For financial year 2018-19: intimated on May 1, 2024
• For financial year 2019-20: intimated on August 30, 2024
• Both orders pertained to Input Tax Credit (ITC) issues
• Original orders imposed demand and penalty on ZHL

Appellate Outcome

The appellate authority has partially dropped the demand and penalty:

For FY 2018-19:

• Initial demand: ₹28.7 lakhs (including penalty of ₹1.6 lakhs)
• Reduced to: ₹0.24 lakhs (including penalty of ₹0.20 lakhs)
• Reduction: ₹28.46 lakhs (99.2% reduction)

For FY 2019-20:

• Initial demand: ₹13.2 lakhs (including penalty of ₹0.9 lakhs)
• Reduced to: ₹0.20 lakhs (including penalty of ₹0.20 lakhs)
• Reduction: ₹13.0 lakhs (98.5% reduction)

Total Impact

Combined reduction across both financial years:

• Total initial liability: ₹41.9 lakhs
• Total reduced liability: ₹0.44 lakhs
• Total reduction: ₹41.46 lakhs (99.0% reduction)

Not Specified Sections

No material disclosures under the following sections: KMP / Board / Auditor Changes, Dividend Declaration, Board Meeting Outcomes, Financial Results, Auditor's Report, Disinvestment / Strategic Actions, Media Release / Investor Communication.