Cipla Limited receives Penalty Order of Rs.9.77 Crore from GST Authority:

Cipla Limited receives Penalty Order of Rs.9.77 Crore from GST Authority Cipla Limited has received a demand order issued by the Joint Commissioner of Central Tax from the Office of the Principal Commissioner of Central Tax, GST East Commissionerate, Bengaluru, Cipla said in its regulatory filing. The company received the demand order on 16th January 2025. The Order imposed a penalty of Rs.9,77,24,792 under relevant provisions of the Central Goods and Services Tax Act, 2017, the Integrated Goods and Services Tax Act, 2017, the Karnataka Goods and Services Tax Act, 2017, and related rules. The GST Authority issued an order imposing 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 a penalty of Rs.67,00,421 for delayed payment timelines to vendors under GST provisions. "The Company intends to challenge the demand order before an authorised authority. Based on an evaluation of the facts and applicable law, the Company believes that the penalty imposed is unfair, unreasonable, and unsustainable in law," stated Cipla Limited. "The Company will file an appeal with the appropriate appellate body in this matter. The order has no meaningful impact on the Company's financials or operations," it stated.