Mumbai, 28 February 2025 – Sanofi India Limited has disclosed regulatory orders under SEBI (LODR) Regulations, detailing tax-related matters concerning its operations in Hyderabad, Gujarat, and Odisha. Despite the orders, the company asserts that there is no material financial or operational impact.
Key Regulatory Developments:
1. Hyderabad (Telangana) – Full Tax Demand Dropped
- Authority: Deputy Commissioner (ST), STU-3, Abids Division, Hyderabad
- Issue: Alleged failure to provide proper documentation for un-reconciled Input Tax Credit (ITC) in FY 2020-21 under GSTR-9C.
- Original Tax Demand: ₹24.53 crore (CGST ₹12.26 crore & SGST ₹12.26 crore) plus interest and penalty.
- Outcome: Post submissions and hearings, the full demand was dropped.
- Impact: No financial or operational burden on the company.
2. Gujarat – Tax Demand Confirmed
- Authority: Assistant Commissioner, Ghatak 21 (Ahmedabad), Range 6, Division 2, Gujarat
- Issue:
- ₹48.12 lakh tax demand confirmed due to non-consideration of ITC reversed in monthly returns for FY 2020-21.
- ₹4.29 lakh tax demand confirmed as ineligible credit.
- Total Tax Demand: ₹99.24 lakh, including interest and penalties.
- Impact: No material financial or operational impact on the company.
3. Odisha – Tax Demand Under Dispute
- Authority: Assistant Commissioner of State Tax, Cuttack-I, East Circle, Odisha
- Issue:
- Alleged excess ITC claim of ₹8.29 lakh for FY 2020-21.
- Total Demand: ₹14.88 lakh (including interest and penalty).
- Next Steps: Sanofi India is in the process of filing an appeal after consulting with legal advisors.
- Impact: No significant financial repercussions anticipated.
Strategic Outlook
Sanofi India has reaffirmed that these regulatory orders will not have any material impact on its business operations or financial stability. The company continues to engage with tax authorities while ensuring compliance with all applicable regulations.This disclosure provides transparency to investors, reinforcing Sanofi India’s commitment to regulatory compliance and prudent financial management.