Coromandel International received a Goods and Services Tax (GST) demand of ₹71.63 lakh along with a penalty of ₹12.66 lakh from the Additional Commissioner (Appeals) in Jodhpur. The order relates to the fiscal year 2019-20 and was communicated on September 21, 2026.

The regulatory filing, submitted to the National Stock Exchange and BSE under Regulation 30 of the SEBI Listing Regulations, details an Order-in-Appeal passed under Section 73 of the Central GST/Rajasthan GST Act, 2017. The demand also includes applicable interest as per the corresponding provisions of the Integrated GST Act, 2017.

Basis of the tax demand

The primary reason cited for the demand is an alleged excess availment of Input Tax Credit (ITC). The authorities identified a discrepancy between the ITC claimed in GSTR-3B returns and the ITC auto-populated in GSTR-2A statements for the period FY20. This mismatch triggered the confirmation of the tax liability by the appellate authority.

Company response and impact

Coromandel stated that it believes it has a strong case to defend on the merits of the matter. The company is in the process of filing an appeal before the Goods and Services Tax Appellate Tribunal to contest the order. Regarding financial implications, the company asserted that there is no significant impact on its financials, operations, or other activities resulting from this communication.

Coromandel International issued a corporate guarantee of USD 15.5 million on September 16, 2026, to secure working capital facilities for its subsidiary, Baobab Mining & Chemicals Corporation (BMCC), based in Senegal.

The disclosure was made pursuant to Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The guarantee is provided in favor of Citibank N.A. and covers the subsidiary’s borrowing needs.

Transaction Details

BMCC is availing a working capital facility of USD 14.09 million (equivalent to XOF 7,867.71 million) from Citibank N.A. Coromandel International’s guarantee amount of USD 15.5 million represents 110% of the facility value, equivalent to XOF 8,654.48 million at the exchange rate as of September 16, 2026.

Corporate Structure and Liability

The investment in BMCC is held through Coromandel Chemicals Limited (CCL), a wholly owned subsidiary of Coromandel International that forms part of the promoter group. The company confirmed that the transaction is conducted at arm's length.

The corporate guarantee creates a contingent liability for Coromandel International. The parent company may be required to pay under the guarantee if BMCC fails to repay the working capital facility. The maximum liability exposure is capped at USD 15.5 million.