National Fertilizers Limited (NFL), a prominent player in India's fertilizer industry, has been served with a significant tax-related order from the Central Tax Department. The company has received a refund recovery claim along with a penalty order totaling ₹116.01 crore.

Details of the Tax Order

The Central Tax Department has issued a combined refund recovery claim and penalty order to National Fertilizers, amounting to ₹116.01 crore. This development could have potential implications for the company's financial position and operations.

Implications for National Fertilizers

While the specific details of the tax refund recovery and penalty are not disclosed, such a substantial amount could impact the company's financial statements. Shareholders and investors may need to closely monitor how NFL plans to address this tax obligation and its potential effect on the company's liquidity and profitability.

Company Response

As of now, National Fertilizers has not released an official statement regarding the tax department's order. It remains to be seen how the company will respond to this development and what measures it might take to address the situation.

Market Impact

Investors and market analysts will likely be watching closely to see how this tax-related issue affects National Fertilizers' stock performance and overall financial health in the coming days.

The fertilizer sector plays a crucial role in India's agricultural economy, and any significant financial challenges faced by major players like National Fertilizers could have broader implications for the industry and related agricultural sectors.

As more information becomes available, stakeholders will be keen to understand the full context of this tax order and its long-term implications for National Fertilizers Limited.

National Fertilizers Limited (NFL), a government-owned fertilizer company, has received a significant tax-related order from the Central Tax Department. The company is facing a refund recovery claim and penalty totaling ₹116.01 crore.

Details of the Tax Order

The order, issued by the Additional Commissioner, Office of the Commissioner of Central Tax, Guntur, includes:

• Recovery of erroneous refunds sanctioned
• Undue refund of accumulated Input Tax Credit (ITC) under inverted tax structure

Company's Response

National Fertilizers has stated that there is no material impact on its financial and operational activities due to this order. However, the company is reviewing the order and plans to exercise its right to file an appeal before the Commissioner Appeals.

Regulatory Disclosure

In compliance with the Securities and Exchange Board of India (SEBI) Listing Regulations, National Fertilizers has disclosed this information to the stock exchanges. The company received the order on September 25, 2025.

About National Fertilizers Limited

National Fertilizers Limited is a Navratna company and a government undertaking. It plays a crucial role in India's fertilizer sector, contributing to the country's agricultural productivity.

While this tax-related action presents a challenge for National Fertilizers, the company's statement suggesting no material impact on its finances indicates its preparedness to address the issue through appropriate legal channels.