The high revenue generating companies Cipla, and IL&FS Transportation received a GST ( Goods and Services Tax ) demand of Rs. 8 crores. Both companies informed the department action through exchange filing.
Cipla received a penalty of Rs. 53,09,449. The order was issued by the Principal Commissioner, Central Goods & Service Tax and Central Excise, Lucknow on 13th November, 2024 and received on 27th November, 2024.
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The order has been passed by GST Authority on the contention that the Company has availed inadmissible TRAN-1 credit. The GST Authority has ordered for recovery of the same along with applicable interest and penalty.
“Based on assessment of facts and prevailing law, the Company is of the view that the penalty levied is arbitrary and unjustified. The Company will file necessary appeal with the appellate authority in this regard. There is no material impact on the Company’s financials or operations due to the said order”, responded Cipla.
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With regards to IL&FS Transportation Networks Limited, The Joint Commissioner of CGST & Services Tax Commissionerate, Bolpur issued the demand order of Rs. Rs. 7,55,54,392 for the Financial Year 2017-18 for alleged noncompliance under Section 74 of CGST Act 2017. The amount is the outstanding GST liability including penalty.
The Company clarified that there is no material impact on financials, operations, or other activities of the Company. It stated that the Company is reviewing the said Show Cause Notices and is assessing next steps on this matter.
The companies made the disclosure under Regulation 30 of SEBI ( Listing Obligations and Disclosure Requirements) Regulations, 2015 ( ‘SEBI LODR Regulations’ ).
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