Archive · 27 Sep 2025
Chambal Fertilisers to Challenge ₹527 Crore Tax Penalty
Chambal Fertilisers, a company that makes fertilizer, was hit with a large fine.
The government says the company owes about ₹527 crore due to a tax issue related to GST.
The problem involves government subsidies and incorrect tax credits from 2018 to 2023.
The company believes the government is wrong and plans to fight the decision in court.
The penalty was issued by a tax official in Patna.
Despite this news, the company’s shares went down a bit on Friday.
Chambal Fertilisers has been making fertilizers in India since 1985.
Chambal Fertilisers received a ₹527 crore penalty order.
The penalty is related to GST and incorrect input tax credit.
The order was issued by the Joint Commissioner of CGST & Central Excise, Patna-I.
The company plans to challenge the order.
Shares of the company closed 1.6% lower on Friday.
- Who
- Chambal Fertilisers and Chemicals Ltd
- What
- Received a ₹527 crore GST penalty
- When
- September 26, 2025
- Where
- Patna-I
- Why
- Disagreement over GST on subsidies and ITC
Government's View
Chambal Fertilisers' View
GST Liability
Government's View
Chambal Fertilisers owes taxes on government subsidies and incorrectly availed input tax credit.
Chambal Fertilisers' View
The company believes it has a good case to contest the order.
- Company
- Chambal Fertilisers and Chemicals Ltd
- Penalty Amount
- ₹527 crore
- Penalty Details
- Alleged GST liability and incorrect ITC
- Order Issuing Authority
- Joint Commissioner of CGST & Central Excise, Patna-I
- Order Received
- September 26, 2025
- Stock Performance
- Down 1.6% on Friday
