Cipla Limited Hit With ₹9.77 Cr GST Penalty

Cipla Limited Hit With ₹9.77 Cr GST Penalty

Cipla Limited has disclosed in a regulatory filing that it has received a demand order from the Joint Commissioner of Central Tax, issued by the Office of the Principal Commissioner of Central Tax, GST East Commissionerate, Bengaluru.

The order imposes a total penalty of ₹9,77,24,792 under the 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. This includes ₹9,10,24,371 for allegedly inadmissible Input Tax Credit (ITC) on customs duty paid challans (TR6) and ₹67,00,421 for delays in vendor payment timelines under GST regulations.

Cipla has stated that it plans to challenge the order before the appropriate appellate authority, asserting that the penalty is arbitrary, unjustified, and not legally sustainable. The company emphasized that the order does not have a significant impact on its financial performance or operations.

The demand order was received by the company on January 16, 2025.