Cipla faces penalty of over Rs 1 Cr by GST authorities
The order has been passed by GST authorities on the contention that the company has availed inadmissible TRAN-1 credit, the company said.
Pharma major Cipla Ltd on Friday said a fine of over Rs 1 crore has been imposed on the company by GST authorities for alleged inadmissible credit claim.
The company has received an order dated December 18, 2024 passed by the GST authorities, imposing a penalty of Rs 1,11,94,324 under applicable provisions of the Central Goods and Services Tax Act, 2017, Cipla said in a regulatory filing.
"The order has been passed by GST Authority on the contention that the company has availed inadmissible TRAN-1 credit. The GST Authority has ordered for recovery of the same along with applicable interest and penalty," it added.
Cipla said based on assessment of facts and prevailing law, it is of the view that the penalty levied is "arbitrary and unjustified".
"The company will file necessary appeals with the appellate authority in this regard. There is no material impact on the company's financials or operations due to the said order," it added.
Edited by Jyoti Narayan