Zydus Lifesciences Limited has received a GST demand order of ₹2.8 crores from Gujarat tax authorities related to alleged tax credit violations during the financial year 2018-19. The pharmaceutical company disclosed this development under regulatory compliance requirements on December 30, 2025.

GST Demand Order Details

The Assistant Commissioner of State Tax, Gujarat, issued the demand order under section 74 of the CGST Act, 2017. The order addresses issues pertaining to inadmissible availment of Input Tax Credit for the financial year 2018-19.

Nature of Alleged Violation

The order specifically targets the company's Input Tax Credit availment practices during FY 2018-19. According to the tax authorities, certain Input Tax Credit claims were inadmissible under the provisions of the CGST Act, 2017. The total demand of ₹2.8 crores encompasses the principal amount along with applicable interest and penalty components.

Company's Response Strategy

Zydus Lifesciences has announced its intention to challenge the order through the appellate process. The company expressed confidence in its position, citing favorable precedents from higher judicial forums.

Key aspects of the company's stance:

• Plans to file an appeal against the demand order
• References past precedents from High Court and Supreme Court judgments
• Maintains optimism about securing a favorable outcome
• Asserts no material financial impact on operations

Financial and Operational Impact

The company has categorically stated that the GST demand order will not result in any material financial impact on its operations. This assessment appears to be based on the company's confidence in successfully appealing the order and the relatively modest size of the demand in relation to the company's overall financial position.

The disclosure was made in compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, ensuring transparency with stakeholders regarding potential regulatory challenges.

Zydus Lifesciences has announced another extension for its planned acquisition of Sterling Biotech Limited's (SBL) Active Pharmaceutical Ingredients (API) business. The company has now extended the closing date to June 30, 2026, marking the second extension since the original agreement was signed.

Timeline of Extensions

The acquisition timeline has seen multiple adjustments since the initial agreement. The following table outlines the progression of deadlines:

Reasons for Latest Extension

According to the company's latest regulatory filing dated December 24, 2025, Sterling Biotech is still working to complete certain conditions precedent outlined in the Business Transfer Agreement. Zydus Lifesciences stated that "SBL is still in the process of completing certain conditions precedents of the BTA and hence the Company and SBL have executed a letter to extend the closing date by June 30, 2026."

Transaction Details

The acquisition involves Sterling Biotech's API business, which represents a strategic expansion for Zydus Lifesciences in the pharmaceutical ingredients sector. The deal remains subject to the completion of various conditions precedent as specified in the original Business Transfer Agreement.

Regulatory Compliance

The company has maintained transparency throughout the process, informing stock exchanges about each development in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The latest update was communicated to both BSE Limited and National Stock Exchange of India Limited.

Strategic Outlook

Despite the extended timeline, Zydus Lifesciences remains committed to completing the acquisition. The company expressed confidence that "the transaction is expected to be completed on or before June 30, 2026." The repeated extensions suggest the complexity of fulfilling all prerequisite conditions while maintaining the strategic value of the deal for both parties involved.