Chambal Fertilisers & Chemicals , a prominent player in the Indian fertilizer industry, has recently encountered a setback in its appeal against a penalty imposed under the Central Goods and Services Tax (CGST) Act. The company, however, remains resolute in its stance and plans to contest the decision.

Penalty Details

The Commissioner (Appeals), Central Goods Services Tax and Central Excise, Jodhpur, has upheld a penalty of Rs 15,55,73,914 against Chambal Fertilisers & Chemicals. This penalty, imposed under Section 74(1) of the CGST Act, relates to the disallowance of transitional credit pertaining to capital goods.

Key Points of the Case

Company's Response

Chambal Fertilisers & Chemicals has stated that it "has a good case on merits" and intends to challenge the order before the appropriate forum. The company emphasized that it had already reversed the disputed transitional credit before the issuance of the show cause notice.

Impact Assessment

According to the company's disclosure, there is no significant impact on its financial, operational, or other activities, except for the penalty amount itself. This suggests that Chambal Fertilisers & Chemicals is financially prepared to handle this setback while pursuing further legal recourse.

Looking Ahead

As Chambal Fertilisers & Chemicals prepares to challenge this order, stakeholders will be keenly watching the developments. The outcome of this case could have implications not only for Chambal Fertilisers & Chemicals but potentially for other companies in similar situations regarding transitional credit under the GST regime.

The fertilizer sector, being crucial for India's agricultural productivity, often faces complex regulatory challenges. How Chambal Fertilisers & Chemicals navigates this issue may provide insights into the broader interplay between the fertilizer industry and India's evolving tax structure.

As the situation unfolds, investors and industry observers will likely be monitoring any potential impact on the company's financial health and operational strategies in the coming quarters.

Chambal Fertilisers & Chemicals Limited has successfully completed the transition of its Registrar and Share Transfer Agent (RTA) services from Zuari Finserv Limited to KFin Technologies Limited, with the change becoming effective from January 1, 2026. The company has received formal confirmations from both National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) regarding the completion of this transition.

Transition Completion Details

The RTA change, which was initially announced and approved by the company's Board of Directors, has now been formally implemented with regulatory confirmations in place.

New RTA Contact Information

Shareholders and beneficial owners can now direct all correspondence and requests related to the company's securities to KFin Technologies at their designated contact points:

KFin Technologies Limited - Unit: Chambal Fertilisers and Chemicals Limited

• Address: Selenium Tower B, Plot 31-32, Gachibowli, Financial District, Nanakramguda, Hyderabad, Telangana – 500032
• Landline: +91-40-6716 2222 / 7961 1000
• Toll Free: 1800 309 4001
• Email: einward.ris@kfintech.com
• Website: www.kfintech.com
• Investor Support: https://kprism.kfintech.com/

Regulatory Compliance and Documentation

As part of the transition process, the company has confirmed that the execution of a tripartite agreement between Chambal Fertilisers, KFin Technologies, and Zuari Finserv Limited is currently under process. The company has committed to intimate stakeholders once this agreement is formally executed, ensuring full compliance with Regulation 7 of the SEBI Listing Regulations.

Both NSDL and CDSL have confirmed the cessation of Zuari Finserv Limited's role as RTA from the beginning of day on January 1, 2026, with KFin Technologies commencing operations as the new RTA from the same date.

Strong Financial Foundation

This operational enhancement comes alongside the company's robust financial performance. In its recent quarterly results, Chambal Fertilisers reported strong operational metrics and declared an interim dividend of ₹5.00 per equity share.

The successful completion of the RTA transition to KFin Technologies represents Chambal Fertilisers' commitment to enhancing investor services and maintaining efficient share-related processes for its stakeholders.