April 19 (Punjab Khabarnama) : Drug company Cipla Ltd on Friday said the GST authority has imposed a penalty of Rs 1.83 crore on it for claiming invalid credit (transitional) on education cess during the transition from excise duty to GST regime. Cipla informed the stock market that the company has received an order from the Principal Commissioner of CGST and Central Excise, Mumbai, Maharashtra to impose a fine of Rs 1,83,17,388.
The order was issued under the provisions of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017. Issuing this order, the GST authority said that the company had claimed transitional credit on education cess while switching from excise duty system to GST system in the financial year 2017-18, which was not valid. The authority ordered its recovery along with fine.
Cipla said that based on assessment of facts and prevailing law, it will file an appeal in this regard with the appellate authority. The company also said that there will be no impact on its financial position or operations due to the said order.
