GST Penalty: Company embroiled in controversy, GST penalty of Rs 527 crore imposed

News Topical, Digital Desk : GST Penalty: Chambal Fertilisers and Chemicals Limited has been dealt a major blow by the GST department. The company informed that it has received a penalty order of approximately ₹527 crore under the Central GST and Bihar GST Acts and the IGST Act. This order was issued by the Joint Commissioner of CGST and Central Excise, Patna-I, on September 26, 2025.

This penalty primarily relates to alleged GST liability on fertilizer subsidies and the incorrect availment of input tax credit (ITC) for the financial years 2018-19 to 2022-23. The company clarified that fertilizer subsidies are not taxable supplies under Section 15(2)(e) of the Central GST Act.

Chambal Fertilizers stated...
Chambal Fertilizers states that this order will have no impact on its business operations or financial position other than the penalty amount. The company claims that it has strong grounds and will challenge this order in the appropriate appellate forum. Chambal Fertilizers was established in 1985 and is headquartered in Kota, Rajasthan. The company is one of India's leading fertilizer companies and manufactures urea, complex fertilizers, and other agricultural products. The company is active in both domestic and international markets and receives fertilizer subsidies from the central government. Chambal Fertilisers Share Price Chambal Fertilisers stock closed at 519.95 on Friday, down 1.51 per cent. The stock has fallen 4.21 per cent in the last five days, 4.02 per cent in one month, 16.05 per cent in six months and 1.01 per cent in one year. 

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