PSU National Fertilizers Ltd (NFL) has received a refund recovery claim and penalty order amounting to Rs. 94.84 crore from the Additional Commissioner, Office of the Commissioner of Central Tax, Guntur, for the period from April 2018 to December 2020. The demand pertains to alleged wrongful claims of refund under the GST regime, specifically regarding undue refunds of accumulated Input Tax Credit (ITC) under the inverted duty structure.
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According to the tax authorities, NFL’s unit in Vijayawada (GSTN No. 37AAACN0189N1Z3) did not qualify for refund eligibility, as the accumulation of ITC was not due to a higher tax rate on inputs compared to output supplies. NFL has stated that the order will not have any material impact on its financial or operational performance. The company is currently reviewing the order and intends to file an appeal before the Commissioner (Appeals).
National Fertilizers Limited
National Fertilizers Limited (NFL), established in 1974, is a Navratna public sector enterprise under the Ministry of Chemicals and Fertilizers, and is India’s second-largest producer of urea. Headquartered in Noida, NFL operates five gas-based urea plants across Punjab, Haryana, and Madhya Pradesh, and is known for its production of neem-coated urea, bio-fertilizers, and various industrial chemicals.
