NEW DELHI, Dec 20: Cipla Ltd, a major player in the pharmaceutical industry, announced on Friday that the GST authority has imposed a penalty exceeding Rs 1 crore for an alleged claim of inadmissible credit.
According to Cipla’s regulatory filing, the company received an order dated December 18, 2024, from the GST authority, which levied a fine of Rs 1,11,94,324 under the relevant provisions of the Central Goods and Services Tax Act, 2017.
The GST authority stipulated that the penalty was due to the company’s claim for inadmissible TRAN-1 credit, mandating recovery along with interest and additional penalties.
Cipla believes that, based on the assessment of circumstances and current laws, the imposed penalty is “arbitrary and unjustified”.
The company plans to appeal this decision with the appropriate appellate authority. Furthermore, it noted that this order does not materially affect its financials or operational capabilities. (PTI)
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