Cipla Challenges Over Rs 1 Crore GST Fine

Cipla Ltd has been fined over Rs 1 crore by the GST authority for alleged inadmissible credit claims. The pharmaceutical company plans to appeal, calling the penalty arbitrary and unjustified. Cipla asserts there will be no material impact on its financials or operations.

Pharmaceutical giant Cipla Ltd is facing a substantial penalty imposed by the GST authority. On Friday, the company disclosed a fine exceeding Rs 1 crore, purportedly for claiming inadmissible credit.

The penalty, amounting to Rs 1,11,94,324, was detailed in an order dated December 18, 2024, and was issued under provisions of the Central Goods and Services Tax Act, 2017. Cipla stated in its regulatory filing that the penalty stems from allegedly availed TRAN-1 credits.

Cipla firmly contests this penalty, labeling it as arbitrary and unjustified. The company plans to file an appeal, maintaining that there will be no significant effects on its financial health or operational activities.

(With inputs from agencies.)