Cipla slapped over Rs 1 crore fine by GST Authority
Cipla has expressed its disagreement with the penalty, stating that it believes the order is arbitrary and unjustified.;
New Delhi: Pharma major Cipla Ltd on Friday said a fine of over Rs 1 crore has been imposed on the company by GST authority for alleged inadmissible credit claim.
Cipla informed the stock exchanges of a recent order issued by the Joint Commissioner, CGST & C. Excise, Patna-1, imposing a penalty of INR 1,11,94,324 under the Central Goods and Services Tax (GST) Act, 2017.
The order, dated 18th December 2024, was received on 19th December 2024 and pertains to an alleged violation involving the company’s availing of inadmissible TRAN-1 credit.
"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,” Cipla said.
In a regulatory filing under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Cipla disclosed the penalty and provided details regarding the action taken by the GST Authority. The penalty is related to the company’s use of certain tax credits, which the authority claims were not in accordance with the applicable GST provisions.
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