A household name in India for over-the-counter medicines, inhalers, and Cofsil lozenges, Cipla Ltd announced on Thursday that the GST body in Lucknow imposed a penalty of Rs 53.1 lakh in line with the Goods and Services Tax Act.
The pharma giant, in a filing to the National Stock Exchange, said that it received the order dated November 13 from the office of the principal commissioner of the Central Goods and Service Tax and Central Excise in Lucknow on Wednesday.
Cipla has allegedly availed an inadmissible TRAN-1 credit according to the GST authority order, and the fine sought to recover the same with interest and penalty. “The penalty levied is arbitrary and unjustified,” stated the company in the filing, stating that it plans to file an appeal with the appellate authority.
The company said that it does not see a material impact of the penalty order on its financials or operations. Cipla’s shares, which rose as the markets opened on Thursday, quickly inched 0.32 per cent down after the regulatory announcement. In comparison, industry peer Dr Reddy’s traded 0.67 per cent in the red in morning trade, while Sun Pharma fell by 1.25 per cent.
