Chambal Fertilizers intends to file a lawsuit and faces a ₹527 crore GST penalty.

According to Chambal Fertilizers and Chemicals Ltd, the Joint Commissioner of CGST & Central Excise, Patna-I, has issued an order imposing a penalty of approximately ₹527 crore under the Central GST/Bihar GST Act and the IGST Act. The primary grounds for the penalty are the claimed GST liability on fertilizer government subsidies and the improper use of input tax credits (ITC) for FY18–19 through FY22–23. The business claimed that Section 15(2)(e) of the Central GST Act excluded the subsidies from taxable supplies. Beyond the penalty amount, Chambal stated that the order has no effect on its business operations or financial situation. "The Company has a good case to contest the abovementioned Order on merits, and therefore, will challenge the same at appropriate appellate forum," said Chambal Fertilisers.