Chambal Fertilisers Faces ₹527 Crore GST Penalty, Plans to Appeal Order

29 Sep 2025 , 03:44 PM

Chambal Fertilisers and Chemicals Ltd has received an order from the Joint Commissioner of CGST & Central Excise, Patna-I, imposing a penalty of about ₹527 crore under the Central GST/Bihar GST Act and IGST Act.

The penalty primarily relates to alleged GST liability on government subsidies for fertilisers and claims of incorrect availing of input tax credit (ITC) during the financial years 2018-19 to 2022-23.

The company clarified that the fertiliser subsidy is excluded from taxable supply under Section 15(2)(e) of the Central GST Act, and therefore, it disagrees with the penalty.

Chambal Fertilisers said the order has no impact on its operations or financials other than the penalty amount levied.

The company stated that it has a strong case on merits and will challenge the order before the appropriate appellate forum.

The order was issued on September 26, 2025.

Chambal Fertilisers is headquartered in Kota, Rajasthan.It is among India’s leading fertiliser manufacturers, offering a diversified product portfolio that includes urea, complex fertilisers, and other agri-inputs.

The company is established in 1985. It also receives government subsidies on specific fertiliser products and has a significant presence in both domestic and international markets.