Pharma major Cipla Ltd on Friday said the company has been fined over Rs 1 crore by GST officials for allegedly disallowing credit claims.
The company has received an order passed by the GST authorities on December 18, 2024, imposing a penalty of Rs 1,11,94,324 under the applicable provisions of the Central Goods and Services Tax Act, 2017, Cipla said in a regulatory filing.
“The GST authority has passed an order on the contention that the company has received disallowable TRAN-1 credit. The GST authority has ordered recovery with applicable interest and penalty,” it added.
Cipla has said that the penalty imposed is ‘arbitrary and unfair’ based on the assessment of data and prevailing laws.
“The company will file the necessary appeal with the Appellate Authority in this regard. There will be no impact on the company’s finances or operations due to the said order,” he added.