Zydus Lifesciences receives ₹74 crore GST demand order over IGST refund issue

Drug firm Zydus Lifesciences Ltd on Saturday (November 1) said it has received a demand from the Joint Commissioner of Common Adjudication Authority, CGST, Ahmedabad, Gujarat, for the period from April 2018 to March 2024.The order pertains to an alleged excess refund claim of Integrated Goods and Services Tax (IGST) on export of goods, arising from the consideration of CIF (Cost, Insurance & Freight) value instead of the FOB (Free On Board) value.

As per the order, the demand amount stands at ₹74.23 crore, with an equivalent penalty of ₹74.23 crore, along with applicable interest. The order was received by the company at 3:36 p.m. on October 31, 2025.

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The adjudication covers four GST registrations located in Gujarat, Maharashtra, Himachal Pradesh, and Goa, under a common order passed by the Joint Commissioner of the Common Adjudication Authority, CGST, Ahmedabad.

Zydus Lifesciences has stated that it firmly believes it has a strong case and intends to challenge the order by filing an appeal. The company added that there is no material financial impact on its operations due to the order.

On Friday (October 31), shares of Zydus Lifesciences Ltd ended at ₹974.00, down by ₹12.30, or 1.25%, on the BSE.

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