Mumbai-based Pharma major Cipla Ltd was imposed a GST penalty of Rs 1.83 crore for claiming inadmissible transitional credit on education cess.
The Principal Commissioner of CGST & Central Excise, Mumbai imposed a penalty of Rs 1,83,17,388 against Cipla under applicable provisions of the Central Goods and Services Tax Act on Friday.
“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,” said Cipla in regulator filing.
The drug maker further added that based on an assessment of facts and prevailing law, it will file necessary appeals with the appellate authority and would not have wnt material impact on the company’s financials or operations.
The generic drug major Cipla with USD 2.8 billion in revenues promoted by the Hameid brothers is the world's largest manufacturer of antiretroviral drugs. It became the first Indian company to receive US FDA approval in 1984 to enter the American markets.
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