The Goods and Services Tax Authority has imposed a penalty of ₹10,95,32,757 on Cipla for allegedly reducing its GST liability by issuing credit notes without confirming the reversal of Input Tax Credit (ITC) at the recipient’s end. The penalty covers the period from 2017-18 to 2023-24 and includes recovery of GST, interest, and penalty. Cipla has expressed its intention to appeal the demand, interest, and penalty, stating that they believe these levies are arbitrary, unjustified, and not tenable. The company believes that the assessment of facts and prevailing law also support its view. The GST Authority has ordered Cipla to recover GST along with applicable interest and penalty, alleging that the company had knowingly reduced its GST liability without verifying the reversal of ITC at the recipient’s end. The company is expected to file an appeal with the appellate authority to challenge the order.
Pharmaceuticals major Cipla is grappling with a whopping ₹10.95 crore Goods and Services Tax (GST) penalty.
