NFL gets GST Demand Notice from Commissioner of Central Tax, Guntur
State-owned National Fertilizers Ltd announced that it has received the refund recovery claim and penalty from the Additional Commissioner, Office of the Commissioner of Central Tax, Guntur vide order dated 30.04.2025 for the period April, 2018 to December, 2020.
The total amount of demand is Rs 94.84 crore and is connected with alleged wrongful refund claims made under the GST Regime.
The Penalty has been imposed due to violations of undue refund of accumulated ITC under inverted tax structure. Since the accumulation of ITC was not on account of rate of tax on inputs being higher than the rate of tax on output supplies in the case of NFL, Vijayawada, (GSTN No. 37AAACN0189N1Z3).
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As per the Tax Department, the accumulated ITC should be not higher to a tax rate on inputs as compared to outputs, which falls under the refund eligibility of GST rules.
Further, the company has stated that there is no material impact on financial and operational activities of the Company on account of this Order. The Company is reviewing the Order and will exercise right to file appeal before Commissioner Appeals.
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