Cipla gets a Penalty of Rs.1.83 crore for claiming ineligible Transitional Credit on Education Cess
The Famous Pharmaceutical Company, Cipla Ltd stated that it has received a penalty of Rs 1.83 crore by the GST department for claiming invalid transitional credit on education cess.
Cipla said in a regulatory filing that it had received an order of Rs.1,83,17,388 penalty imposed from the Principal Commissioner of CGST & Central Excise in Mumbai, Maharashtra under the CGST and the MGST Act 2017 applicable provisions.
The GST Authority issued the order on the grounds that the company claimed an ineligible transitional credit on education cess during the transition from the excise regime to the GST regime in FY 2017-18, and ordered its recovery with a penalty.
Cipla further stated that, based on an assessment of the facts and the applicable law, it will file the required appeals with the appellate body. According to the company, the order has no significant impact on its finances or operations.
