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News Topical, Digital Desk : Pharmaceutical company Eris Lifesciences Limited informed after the stock market closed on Friday (August 22) that it has received a show cause cum demand notice from the Directorate General of GST Intelligence (DGGI), Mumbai. In this notice, it has been accused of not paying Integrated GST (IGST) under the reverse charge mechanism on import of services.
This notice is related to the company's purchase of the 'Zomelis' brand and its associated trademark rights registered in India from Novartis AG Switzerland through an assignment deed on November 27, 2019. The notice has sought IGST of Rs 16.84 crore as estimated financial impact and interest at the rate of 18 per cent per annum from November 27, 2019, while the penalty has not been mentioned in it.
The company will submit its response Eris Lifesciences said that it is evaluating the matter and will submit its response within the stipulated time period based on the advice of its tax advisors. The company said that it maintains a close record of financial transactions and contributes to nation building as a responsible business. Eris further said that it is confident that it has complied with the GST provisions and has a strong case on merit.
Share performance The company's stock closed at Rs 1,769.90 on Friday with a gain of 1.04 per cent. In the last one year, the company's stock has seen a rise of 42.87 percent.
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