NEW DELHI, Dec 28: Zydus Wellness Ltd announced on Saturday that its fully-owned subsidiary has received a GST demand notice of Rs 56.33 crore, along with the applicable interest and penalties from tax authorities.
Zydus Wellness Products Ltd (ZWPL) has been informed by the Directorate General of Goods and Services Tax Intelligence, Surat Zonal Unit, regarding this GST demand, as stated in a regulatory filing.
The notice claims that the GST is owed for the acquisition of intellectual property rights from Heinz Italia S.P.A. by Heinz India Pvt Ltd, which has since merged with ZWPL.
In the filing, ZWPL expressed confidence in the strength of its position and is currently assessing the situation to determine the next steps following a thorough examination of the notice.
The order’s applicable period pertains to the time before the acquisition on January 30, 2019, according to the filing.
Zydus Wellness indicated that this order will not affect the company’s financial, operational, or other activities.
The potential impact is limited to the final tax liability determined, along with any interest and penalties, with the possibility of indemnification by Heinz Italia S.P.A.
(PTI)
