Drug firm Eris Lifesciences Limited on Friday (August 22) said it has received a show cause cum demand notice from the Directorate General of GST Intelligence (DGGI), Mumbai, alleging non-payment of integrated GST (IGST) under the reverse charge mechanism on import of services.
The notice pertains to the company’s acquisition of trademark rights, including the title of ‘Zomelis’ and its associated brands registered in India, from Novartis AG, Switzerland, through an assignment deed dated November 27, 2019.
The expected financial implication, as mentioned in the notice, is IGST of ₹16,84,67,040 along with applicable interest at 18% per annum from November 27, 2019. The penalty has not been specified in the notice.
Eris Lifesciences said it is evaluating the matter and, based on advice from its tax consultants, will submit its reply within the prescribed time period.
The company stated that it maintains a scrupulous record of financial dealings and contributes towards nation-building as a responsible business, adding that its compliance is in line with the letter, spirit and intent of the law and aligned with prevailing industry practices.
Eris further noted that it believes it has complied with GST provisions and has a good case on merits.
