Cipla Limited faces Rs.9.77 cr penalty from GST authority

Cipla Limited has received a demand order issued by the Joint Commissioner of Central Tax from the Officer of the Principal Commissioner of Central Tax, GST East Commissionerate, Bengaluru, according to Cipla’s regulatory filing.

The Order imposed a penalty of Rs. 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 Order has been passed by the GST Authority levying a total penalty of Rs. 9,77,24,792, including a penalty of Rs. 9,10,24,371 for the inadmissible Input Tax Credit (ITC) availed on customs duty paid challans (TR6) and penalty of Rs. 67,00,421 in relation to delayed payment timelines to vendors under GST provisions.

The Company is likely to challenge the demand order before an appropriate authority. Based on an assessment of facts and prevailing law, the Company is of the view that the penalty levied is, arbitrary, unjustified and unsustainable in law,” said Cipla Limited.

“The Company will file a necessary appeal with the appellate authority in this regard. There is no material impact on the Company’s financials or operations due to the said order,” the Company added.

The Company received the demand order on January 16, 2025.

Source: ET Legal World.com