Eris Lifesciences Gets GST Notice Over ₹16.8 Crore IGST on Novartis Trademark Deal

25 Aug 2025 , 09:36 AM

Eris Lifesciences Ltd said on Friday (August 22) that 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 the import of services.

The notice is linked to the company’s 2019 acquisition of trademark rights for Zomelis and related brands registered in India. Eris had acquired the rights from Novartis AG, Switzerland, through an assignment deed dated November 27, 2019.

According to the notice, the expected financial impact amounts to IGST of about ₹16.85 crore, along with 18% annual interest from the date of the transaction. The penalty amount has not been specified.

Eris Lifesciences said it is reviewing the matter with its tax advisors and will respond within the prescribed timeline. The company maintained that it keeps a transparent financial record, complies with the spirit and letter of the law, and follows industry practices. The firm added that it believes it has complied with GST provisions and has a strong case on merits.

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