Sanofi India has received a show cause notice from the Commercial Tax Officer (Audit)-6.1, DGSTO-6, Bengaluru, alleging excess input tax credit claims. According to reports from Business Standard, the notice was dated September 25, 2026, and issued under Section 73 of the Karnataka Goods and Services Tax Act, 2017. The notice proposes a tax liability of ₹14.43 crore and interest of ₹9.31 crore, bringing the total amount to ₹23.74 crore. The authority alleged that the company availed excess Input Tax Credit (ITC) during the period from April 2022 to March 2023.
As reported by Business Standard, Sanofi India stated it is examining the show cause notice in consultation with its tax advisers and will submit a response within the prescribed time. The company indicated it does not envisage any adverse impact on its financials, operations or other activities arising from the notice. In its disclosure to stock exchanges under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company clarified its stance on the potential financial impact. The company stated it will submit a reply within the prescribed time period after reviewing the relevant facts on which the demand is based.
According to Business Standard, Sanofi India is engaged in the manufacture and marketing of pharmaceutical products and vaccines. The company's shares rose 0.34% to settle at ₹3,143.40 on Friday, September 25, 2026, following the announcement of the GST notice.
The demand highlights a significant divergence between the principal tax amount and the accrued interest. Interest of ₹9.31 crore accounts for approximately 39% of the total claimed amount of ₹23.74 crore. This high interest component relative to the base tax suggests a prolonged period of non-compliance or dispute resolution since the FY23 period ended, reflecting the compounding nature of statutory interest over the three-year gap between the alleged violation and the current notice. On a standalone basis, as reported by Business Standard, Sanofi India's net profit rose 20.14% to ₹83.50 crore while net sales rose 7.73% to ₹437.70 crore in Q2 June 2026 over Q2 June 2025.
