Cipla hit with over Rs 9 crore GST penalty, plans appeal
Drug major Cipla has been hit with a penalty of Rs 9.77 crore by the GST Authority for alleged tax violations under the Central Goods and Services Tax Act, 2017, and related regulations.
The order, issued by the Joint Commissioner of Central Tax from the GST East Commissionerate, Bengaluru, was received by the company on January 16, 2025.
"An order passed by the GST Authority imposing a penalty of INR 9,77,24,792 under applicable provisions of the Central Goods and Services Tax Act, 2017, the Integrated Goods & Services Tax Act, 2017, the Karnataka Goods & Services Tax Act, 2017 and rules made thereunder," the Company informed in a BSE filing.
The penalty includes INR 9.10 crore for inadmissible Input Tax Credit (ITC) availed on customs duty challans (TR6) and INR 67 lakh for delays in vendor payments under GST provisions.
"The Order has been passed by the GST Authority levying a total penalty of INR 9,77,24,792, including penalty of INR 9,10,24,371 for the inadmissible Input Tax Credit (ITC) availed on customs duty paid challans (TR6) and penalty of INR 67,00,421 in relation to delayed payment timelines to vendors under GST provisions," it added.
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