Chambal Fertilisers and Chemicals Limited has received an order imposing a GST penalty amounting to ₹5,26,84,73,848. The penalty relates to alleged GST liability on subsidy receivables from the Government of India and a claimed erroneous Input Tax Credit for financial years 2018-19 to 2022-23. The company intends to contest the order at an appropriate appellate forum, stating that it has a strong case on merits.
GST Penalty Details
An order has been passed against Chambal Fertilisers, levying an aggregate penalty of ₹5,26,84,73,848. The order, dated 26.09.2025, was issued by the Joint Commissioner, CGST & Central Excise, Patna-I. The company received the order on September 26, 2025.
Grounds for the Penalty
The penalty is based on alleged GST liability related to subsidy receivables from the Government of India concerning fertilisers. It also involves the alleged wrong availment of Input Tax Credit (ITC) for financial years 2018-19 through 2022-23.
Company Response
Chambal Fertilisers maintains that, as per section 15(2)(e) of the Central GST Act, subsidies receivable from the Government of India are excluded from the value of taxable supply and, therefore, GST is not applicable. The company states it will challenge the order at an appropriate appellate forum.
Financial Impact
The company anticipates no significant financial impact beyond the amount of the penalty levied. Chambal Fertilisers has expressed confidence in contesting the above-mentioned order.
Source: BSE
