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News Topical, Digital Desk : Zydus Lifesciences Limited announced after the stock market closed on Thursday that a penalty of ₹3.35 crore (approximately $1.35 billion) has been imposed on the company. The penalty arises from an order related to the utilization of CENVAT credit on sales commissions paid to foreign entities. The order was issued by the Commissioner of CGST, Ahmedabad, and the company was notified via email on September 24, 2025.

Zydus Lifesciences Limited stated in a filing to the exchange that the company has received several show-cause notices from the Central Goods and Services Tax (CGST) and Central Excise departments. These notices cover the period from March 2008 to June 2017 and relate to the illegal availment of CENVAT credit on input services, totaling ₹39,247 crore.

What is the matter? The company stated that the matter relates to the use of CENVAT credit on sales commissions paid to foreign entities. The initial notices covered the period from March 2008 to June 2017, with a total demand of ₹39,247 crore. However, following the company's presentations, other demands totaling ₹35,897 crore were dropped. 

Stock Performance

The company's stock closed down 1.61% at ₹1,019.30 on Thursday. Over the past year, the company's stock has declined 4.15%.


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Zydus Lifesciences Limited ZLL CGST Central Excise CENVAT credit Sales commission Foreign entities Penalty ₹3.35 crore Show cause notices Input services March 2008 to June 2017 ₹39.247 crore ₹35.897 crore demand dropped Ahmedabad Commissioner SEBI disclosure Regulatory update Tax authorities Appeal plan Corporate compliance financial news