Zydus Wellness arm receives GST Demand of Rs.56.33 Crore:

Zydus Wellness arm receives GST Demand of Rs.56.33 Crore Zydus Wellness Ltd announced on Saturday that its wholly-owned arm has received a GST demand of Rs 56.33 crore from the tax authority, along with associated interest and penalty. "Zydus Wellness Products Ltd. (ZWPL), a wholly owned subsidiary company, has received an intimation from the Directorate General of Goods and Services Tax Intelligence, Surat Zonal Unit, alleging a GST demand of Rs.56.33 crore, plus applicable interest and penalty," according to a regulatory filing. The intimation claims that GST was due on the acquisition of intellectual property rights from Heinz Italia S.P.A. by Heinz India Pvt Ltd, which has since amalgamated with ZWPL. "ZWPL believes that there is a strong merit in the case, and ZWPL is evaluating the next steps based on a detailed review of the intimation," stated the exchange filing. According to the filing, the order covers the pre-acquisition period prior to January 30, 2019. This order has no influence on the company's/ZWPL's operations, finances, or other activities, it noted. The company said that the impact will be limited to the final tax liability as determined, along with any interest or penalties, and will be entitled for indemnification by Heinz Italia S.P.A.