Zydus Lifesciences Limited has disclosed that its wholly owned subsidiary, Zydus VTEC Limited, has received an Order-In-Original from the Deputy Commissioner of CGST & Central Excise, Ahmedabad North Commissionerate.

The order pertains to the alleged availment of inadmissible Input Tax Credit (ITC) under the CGST Act, 2017, for the period between September 2020 and March 2023.

According to the company’s regulatory filing dated May 5, 2026, the authority has issued a demand and penalty of Rs 9 million each under Section 74 of the CGST Act.

Zydus Lifesciences stated that it strongly believes the case has merit and intends to challenge the order through an appeal process.

The company further said it remains hopeful of receiving a favourable outcome based on past High Court and Supreme Court judgments on similar matters. It also clarified that the order is not expected to have any material financial or operational impact on the company.