Zydus Lifesciences GST Appeal Order Upholds Rs. 10.12 Million Penalty

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.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+5.58%	+5.63%	+7.51%	+5.04%	+9.96%	+60.69%

Zydus Lifesciences Limited has informed stock exchanges that the United States Food and Drug Administration (USFDA) has concluded a GMP (Good Manufacturing Practice) surveillance inspection at its Biologics Injectable manufacturing facility. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Inspection Details

The USFDA conducted the GMP surveillance inspection at the company's Unit 9 facility, situated at Zydus Biotech Park, Changodar, Ahmedabad. The key details of the inspection are summarised below:

Parameter:	Details
Facility:	Unit 9, Zydus Biotech Park, Changodar, Ahmedabad
Facility Type:	Biologics Injectable Plant
Inspection Type:	GMP Surveillance Inspection
Inspection Period:	April 27 to May 5, 2026
Total Observations:	Seven
Data Integrity Observations:	None

Outcome and Next Steps

The inspection closed with seven observations. Notably, there were no data integrity related observations recorded during the inspection. Zydus Lifesciences stated that the company will closely work with the USFDA to address the observations expeditiously.

The development was communicated to BSE Limited and the National Stock Exchange of India Limited as a regulatory disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.