Zydus Wellness Subsidiary Receives ₹6.30 Million GST Penalty Order from CGST Commissionerate

Zydus Wellness Limited has disclosed to stock exchanges that its wholly owned subsidiary received a significant GST penalty order from tax authorities. The regulatory filing, made under SEBI Listing Regulations, reveals important details about the tax proceedings and the company's response strategy.

GST Penalty Details

Zydus Wellness Products Limited (ZWPL), the wholly owned subsidiary of Zydus Wellness Limited, received an order in Form GST DRC-07 from the Office of The Assistant Commissioner, Division-II, CGST Commissionerate, Ghaziabad, Uttar Pradesh. The order was received on March 29, 2026 at 5:04 p.m.

Parameter:	Details
Penalty Amount:	₹6.30 million
Additional Charges:	Applicable interest
Financial Years Covered:	2019-20 and 2020-21
Issuing Authority:	Assistant Commissioner, Division-II, CGST Commissionerate, Ghaziabad, UP

Nature of Alleged Violation

The CGST authorities have alleged less reversal of input tax credit under section 17 of The Central Goods and Service Tax Act, 2017 read with rule 42 of Central Goods and Service Tax Rules, 2017. The penalty has been imposed under the provisions of section 74(9) read with section 122(2)(b) of the CGST Act.

Company's Response and Impact Assessment

Zydus Wellness Limited has indicated that the order is currently appealable and ZWPL will make an assessment for the next course of action. The company has provided a clear stance on the potential impact of this development.

Impact Analysis:

No impact on financial, operational or other activities of the Company or ZWPL due to this order
The impact will be limited to the final tax liability as may be ascertained along with interest and penalty, if any
The company is evaluating its legal options given the appealable nature of the order

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 read with clause no. 20 of Para A of Part A of Schedule III of the SEBI Listing Regulations, along with relevant SEBI Master Circulars. This demonstrates the company's commitment to maintaining transparency with stakeholders regarding material developments that could affect its operations.

Zydus Wellness Limited has made a regulatory disclosure regarding the acquisition of equity shares by one of its designated persons under the SEBI Prohibition of Insider Trading Regulations, 2015. The transaction involves Mr. Rinesh Gajjar, who purchased shares from the open market during March 2026.

Transaction Details

The share acquisition by the designated person involved specific parameters that have been disclosed in compliance with regulatory requirements. Mr. Rinesh Gajjar acquired the shares through open market transactions executed on the National Stock Exchange.

Parameter	Details
Acquirer	Rinesh Gajjar (Designated Person)
Number of Shares	1,500 equity shares
Share Face Value	₹2 per share
Transaction Value	₹6,04,443.15
Acquisition Period	March 12, 2026 to March 13, 2026
Exchange	National Stock Exchange (NSE)
Disclosure Date	March 16, 2026

Shareholding Position

The acquisition represents a change in the designated person's shareholding position in Zydus Wellness Limited. Prior to this transaction, Mr. Gajjar held no equity shares in the company, representing 0.00% shareholding.

Shareholding Status	Number of Shares	Percentage
Pre-acquisition	0	0.00%
Post-acquisition	1,500	0.00%

Regulatory Compliance

The disclosure has been made in prescribed Form B under Regulation 7(2) of SEBI Prohibition of Insider Trading Regulations, 2015. The company secretary and compliance officer, Nandish P. Joshi, submitted the disclosure to both BSE Limited and National Stock Exchange of India Limited on March 18, 2026. The designated person is based at Zydus Corporate Park in Ahmedabad, Gujarat, and the transaction was completed through open market purchases on NSE. No derivative trading was involved in this transaction, as confirmed in the regulatory filing.