Sanofi India Limited, a leading pharmaceutical company, has received a tax order from the Office of the Deputy Commissioner of State Tax, Ahmedabad, Gujarat, amounting to Rs. 24,10,359 for the financial year 2018-19. The order, dated 23rd December 2025, was also received by the company on the same day. The total demand includes tax of Rs. 12,95,930, interest of Rs. 9,84,836, and penalty of Rs. 1,29,593, arising from discrepancies between the Input Tax Credit (ITC) claimed in GSTR-3B and ITC available in GSTR-2A.

The Deputy Commissioner’s order highlights the difference in ITC claims during the FY 2018-19, where the assessing authority denied the excess claim of ITC. This has resulted in the combined tax, interest, and penalty demand of over Rs. 24 lakh. Sanofi India, while acknowledging the order, intends to file an appeal with the Higher Tax Authorities, ensuring the matter is addressed through the proper legal channels.

This tax demand order is part of the company’s regulatory and compliance disclosure under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure reflects the company’s commitment to corporate transparency and adherence to legal and statutory requirements, keeping investors informed about significant developments that may impact financial and operational activities.

While the demand is quantifiable in monetary terms at Rs. 24.10 lakh, the company has clarified that it will appeal against the order, reflecting its proactive approach to resolve regulatory matters and safeguard shareholder interests. The appeal process will involve presenting the company’s case before higher tax authorities to contest the disallowance of the ITC claims.

Sanofi India’s disclosure emphasizes that the company continues to maintain strict compliance with SEBI LODR regulations and keeps investors informed about all material regulatory developments. This action also highlights the importance of accurate ITC reporting and reconciliation between GSTR-3B and GSTR-2A, which is critical for pharmaceutical companies and other GST-compliant businesses in India.

The company’s financial and operational activities remain unaffected in the short term, as the matter is subject to appeal and legal resolution. Sanofi India continues to focus on its core pharmaceutical operations, research and development, and market expansion, while simultaneously ensuring robust compliance practices for all statutory obligations.

This disclosure also underscores the significance of corporate governance and transparency in listed companies, particularly in the pharmaceutical sector, where regulatory scrutiny is stringent. By informing the market about the tax order and the appeal process, Sanofi India reinforces its commitment to maintaining investor confidence and regulatory adherence.

In conclusion, the Rs. 24.10 lakh tax demand from the Deputy Commissioner of State Tax, Ahmedabad marks a regulatory development for Sanofi India, primarily related to ITC claim discrepancies in FY 2018-19. The company’s intention to appeal the order before higher authorities demonstrates its proactive approach to legal and statutory compliance, ensuring that its financial and operational integrity remains strong. Investors, stakeholders, and market participants can view this disclosure as part of Sanofi India’s continued commitment to transparency, corporate governance, and responsible regulatory practices.

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