Sanofi India Limited has been issued a Show Cause Notice by the Additional Commissioner of CGST and CX, Mumbai East, for alleged misclassification of certain products. The company faces a proposed tax liability and penalty totaling ₹72,77,41,958 for the financial year 2020-21. The notice pertains to classifying products at a 5% concessional rate instead of the applicable 12%.
GST Authorities Issue Show Cause Notice to Sanofi India
Sanofi India Limited announced on August 31, 2026, that it has received a Show Cause Notice from the Additional Commissioner of CGST and CX, Mumbai East. The notice, dated August 28, 2026, alleges misclassification of certain products by the company. The alleged misclassification involves applying a 5% concessional Goods and Services Tax (GST) rate instead of the applicable 12% rate for the financial year 2020-21.
Significant Financial Implications
The notice proposes a significant tax liability of ₹36,38,70,979. Furthermore, it suggests levying a penalty of an equal amount, ₹36,38,70,979, for the alleged misclassification. In total, the potential financial impact amounts to ₹72,77,41,958. The company is currently reviewing the notice and gathering facts to prepare a response.
Company’s Response and Outlook
Sanofi India stated that it is in the process of responding to the notice after examining the basis for the determined demand. The company is consulting with its tax advisors to assess the implications and formulate an appropriate course of action. Sanofi India does not currently foresee any adverse impact on its financials, operations, or other activities arising from this Show Cause Notice, pending their review and response submission.
Source: BSE
