Zydus Lifesciences Limited, a pharma major headquartered in Ahmedabad, Gujarat, has received a demand notice of Rs 74.23 crore from the GST Department in connection with a claimed refund of IGST.
According to media reports, the notice pertains to an alleged excess refund claim of Integrated Goods and Services Tax (IGST) on exports, arising from the consideration of the CIF (Cost, Insurance & Freight) value rather than the FOB (Free On Board) value.
As per the order, the demand amount stands at Rs 74.23 crore, with an equivalent penalty of Rs 74.23 crore, along with applicable interest.
On November 1, the company said that it has received a demand from the Joint Commissioner of the Common Adjudication Authority, CGST, Ahmedabad, for the period from April 2018 to March 2024. The company is reported to have received the order on October 31.
The adjudication covers four GST registrations located in Gujarat, Maharashtra, Himachal Pradesh, and Goa, under a single order passed by the Joint Commissioner of the Common Adjudication Authority, CGST, Ahmedabad.
The company said it firmly believes it has a strong case and plans to challenge the order by filing an appeal. It added that there is no material financial impact on its operations due to the order.
On Monday, shares of the company traded flat after hitting a day’s high of Rs 980.55.
It was Rs 973.40 at the time of this article going live.
Formerly known as Cadila Healthcare Limited, the company is engaged in the full pharmaceutical value chain, from active pharmaceutical ingredients (APIs) to finished dosage forms.
In terms of geographical reach, it operates in regulated markets including the US and Europe, as well as Latin America, South Africa, and other emerging markets.
For the financial year ending March 31, 2025, the company’s annual turnover was approximately Rs 23,500 crore. It has an employee strength of over 2,600 worldwide.
Also Read: USFDA Approves Zydus Lifesciences’ EIR For The Jarod Facility https://www.vibesofindia.com/usfda-approves-zydus-lifesciences-eir-for-the-jarod-facility/
