Company letter dated February 20, 2025 intimating the Stock Exchange on the order received on February 18, 2025 for Service Tax Demand and Penalty for the period October 01, 2014 to June 30, 2017.
NOVARTIND · price
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Awaiting price reaction for this filing.
Novartis India has informed BSE that the Commissioner (Appeals-II) of CGST & Central Excise, Mumbai, has upheld the original service tax demand against the company for FY 2014-15. The total financial impact stands at approximately ₹30.05 lakh — comprising a service tax demand of ₹15,01,762 and a penalty of ₹15,03,762, with interest yet to be quantified. The dispute pertains to the alleged non-reversal of Common Input Tax Credit on sale of business on a going-concern basis. This is a follow-up to the original order received in February 2025, and the company is now evaluating its options to file a further appeal before the appropriate higher authority.
The financial impact is small relative to Novartis India's size and is unlikely to affect share price materially; however, the matter highlights an ongoing tax litigation with no clear resolution yet as the company intends to contest further.