Cipla Limited has confirmed that the Maharashtra Goods & Service Tax Department initiated an inspection/search at certain company facilities and offices in Maharashtra on 5 February 2026 under Section 67 of the MGST Act, 2017. The company states there is no financial or operational impact so far and it is fully cooperating.
Cipla Limited has disclosed that the Goods & Service Tax Department, Maharashtra, has initiated inspection and search proceedings at some of its facilities and offices in the state. The action is being carried out under Section 67 of the Maharashtra Goods & Service Tax Act, 2017, which empowers authorities to inspect records where tax-related irregularities are suspected.
Key Developments At A Glance
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Inspection/search initiated on 5 February 2026 at 1230 hours by the Deputy Commissioner of State Tax, Maharashtra, at select Cipla locations in Maharashtra.
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Proceedings are under Section 67(1) and 67(2) of the Maharashtra Goods & Service Tax Act, 2017, covering inspection and search of premises, documents, and records.
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Focus areas include payment of GST, claims of input tax credit, and refunds, among other tax compliance aspects.
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Cipla has clarified that, as of now, there is no financial impact arising from the initiation of these proceedings.
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The company has also reported that its manufacturing, supply chain, and day-to-day business operations remain unaffected and continue as normal.
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Management has reiterated that Cipla is extending full cooperation and assistance to the GST authorities during the ongoing inspection and search.
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The development comes at a time when tax authorities are intensifying GST compliance reviews across large corporates, particularly in areas of input tax credit and refund claims, to plug potential revenue leakages.
For investors and stakeholders, the current disclosure indicates a procedural regulatory review rather than a concluded demand or penalty, with Cipla committing to update the exchanges on any material developments.
Sources: Stock exchange disclosure by Cipla Limited, Maharashtra Goods & Service Tax Act, 2017, Scanx Trade, Investywise, Economic Times, TaxTMI.