Sanofi India Receives GST Show Cause Notice for ₹72.77 Crore Tax and Penalty
Sanofi India received a GST Show Cause Notice alleging product misclassification for FY 2020-21. The notice proposes a tax liability of ₹36.39 crore and a penalty of ₹36.39 crore, totaling ₹72.77 crore. The company is consulting advisors and expects no adverse financial impact.
The potential tax and penalty amount of over ₹72 crore is material, but the company's assertion of no expected adverse financial impact mitigates the immediate impact to medium.
The company has received a notice with a significant potential financial implication, but they are in the process of responding and do not foresee an adverse impact. The sentiment is neutral as the outcome is uncertain.
Sanofi India Limited has announced the receipt of a Show Cause Notice dated 28th August 2026 from the Additional Commissioner of CGST and CX, Mumbai East. The notice, downloaded on 31st August 2026, alleges that the company misclassified certain products, applying a concessional rate of 5% instead of the applicable 12% for the financial year 2020-21.
The GST authorities have proposed to determine a tax liability of ₹36,38,70,979 and a penalty of a similar amount, totaling ₹72,77,41,958. The company is currently in the process of responding to the notice after gathering the relevant facts.
Sanofi India stated that it is examining the Show Cause Notice in consultation with its tax advisors and will take appropriate steps, including submitting a reply within the prescribed time. The company does not anticipate any adverse impact on its financials, operations, or other activities arising from this notice.
A plain-language summary of a public exchange filing by Sanofi India Limited. Read the original for the full detail.