Pharma major Cipla Ltd on Friday (December 20, 2024) said a fine of over ₹1 crore has been imposed on the company by GST authority for alleged inadmissible credit claim.
The company has received an order dated December 18, 2024 passed by the GST authority, imposing a penalty of ₹1,11,94,324 under applicable provisions of the Central Goods and Services Tax Act, 2017, Cipla said in a regulatory filing.
“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,” it added.
Cipla said based on assessment of facts and prevailing law, it is “of the view that the penalty levied is arbitrary and unjustified”.
“The company will file necessary appeals with the appellate authority in this regard. There is no material impact on the company’s financials or operations due to the said order,” it added.
Published – December 20, 2024 09:51 pm IST