Cipla hit with over Rs 9 crore GST penalty, plans appeal
Drug major Cipla has been hit with a penalty of Rs 9.77 crore by the GST Authority for alleged tax violations under the Central Goods and Services Tax Act, 2017, and related regulations.
The order, issued by the Joint Commissioner of Central Tax from the GST East Commissionerate, Bengaluru, was received by the company on January 16, 2025.
“An order passed by the GST Authority imposing a penalty of INR 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 Company informed in a BSE filing.
The penalty includes INR 9.10 crore for inadmissible Input Tax Credit (ITC) availed on customs duty challans (TR6) and INR 67 lakh for delays in vendor payments under GST provisions.
“The Order has been passed by the GST Authority levying a
total penalty of INR 9,77,24,792, including penalty of
INR 9,10,24,371 for the inadmissible Input Tax Credit (ITC)
availed on customs duty paid challans (TR6) and penalty of
INR 67,00,421 in relation to delayed payment timelines to
vendors under GST provisions,” it added.
Cipla has deemed the penalty “arbitrary, unjustified, and unsustainable” and announced plans to challenge it through an appeal.
The company emphasized that the penalty would not have a material impact on its financials or operations.
Read also: Cipla slapped over Rs 1 crore fine by GST Authority
Established in 1935, Cipla is a global pharmaceutical company focused on agile and sustainable growth, complex generics, and deepening portfolio in its home markets of India, South Africa, North America, and key regulated and emerging markets. It has strengths in the respiratory, anti-retroviral, urology, cardiology, anti-infective, and CNS segments. It has 47 manufacturing sites around the world which produces 50+ dosage forms and 1,500+ products using cutting-edge technology platforms to cater to its 80+ markets.
