An order passed by the GST Authority imposing a penalty of ₹ 10,95,32,757 on Cipla under applicable provisions of the Central Goods and Services Tax Act, 2017, Rajasthan Goods and Services Tax Act, 2017, and Integrated Goods and Services Tax Act, 2017.
The order has been passed by the GST Authority on the contention that during the period FY 2017-18 to FY 2023-24, the Company reduced its GST liability by issuing credit notes without confirming the reversal of Input Tax credit (ITC) at the recipient’s end.
The GST authority has ordered recovery of GST along with applicable interest and penalty.
“Based on an assessment of facts and prevailing law, the Company is of the view that the GST demand, interest and penalty levied is arbitrary, unjustified, and not tenable,” Cipla said in an exchange filing.
The Company is likely to file an appeal with the appellate authority in this regard.
Source: ET Legal World
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