Cipla faces Rs.53 Lakh GST penalty over inadmissible TRAN-1 Credit
Cipla Limited has received an order passed by the Goods and Service Tax Authority imposing a penalty of Rs.53,09,449 under applicable provisions of the Central Goods and Services Tax Act, 2017 and rules made thereunder.
The order was passed by the GST Authority on the contention that the Company has availed inadmissible TRAN-1 credit, ordering recovery of the same along with applicable interest and penalty.
The GST TRAN 1 is a transition form for the already registered taxpayers in old schemes who are filing the GST TRAN -1 form for the purpose of availing their previous input tax credit accumulated from earlier purchased stock before the implementation of the GST.
The Office of the Principal Commissioner, Central Goods & Service Tax and Central Excise, Lucknow, has issued the demand order on November 13, 2024. "Based on the assessment of facts and prevailing law, the Company is of the view that the penalty levied is arbitrary and unjustified," Cipla said in an exchange filing.
