Cipla received a Rs 1.83 crore penalty from the GST authority for claiming inadmissible transitional credit on education cess during the transition from excise to GST regime. The company plans to appeal the order.
New Delhi, Apr 19 (PTI) Pharma major Cipla Ltd on Friday said it has been imposed a penalty of Rs 1.83 crore by the GST authority for claiming inadmissible transitional credit on education cess.
The company has received an order from the Principal Commissioner of CGST & Central Excise, Mumbai, Maharashtra imposing a penalty of Rs 1,83,17,388 under applicable provisions of the Central Goods and Services Tax Act, 2017 and Maharashtra Goods and Services Tax Act, 2017, Cipla said in a regulatory filing.
"The order has been passed by the GST Authority on the contention that the company has claimed inadmissible transitional credit on education cess during the transition from excise regime to GST regime in FY 2017-18 and has ordered recovery of the same with penalty," it added.
Cipla further said that based on an assessment of facts and prevailing law, it will file necessary appeals with the appellate authority in this regard.
There is no material impact on the company's financials or operations due to the said order, it added.
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