Reliance Industries Gets ₹56.44 Crore GST Penalty; Company to Appeal

Mukesh Ambani–led Reliance Industries Ltd (RIL) has received a penalty order of ₹56.44 crore from the Joint Commissioner of CGST, Ahmedabad, the company said in a regulatory filing on Friday.

Why the Penalty Was Imposed

The order dated November 25 states that the company’s input tax credit (ITC) should be treated as blocked credit.
However, Reliance said the tax authority ignored the classification of services provided by its vendor, and the order was issued without considering the company’s explanation.

The penalty has been levied under Section 74 of:

• Central Goods and Services Tax Act, 2017

• Gujarat Goods and Services Tax Act, 2017

• Integrated Goods and Services Tax Act, 2017

Reliance received the order via email on November 27 at 11:04 am.

Reliance to Challenge the Penalty

The company said it intends to file an appeal, arguing that the ITC was wrongly interpreted as blocked credit.

It clarified that the financial impact is limited to the penalty amount alone, and that there is no effect on its operations or business activities.

Market Reaction

RIL shares, which recently hit a new 52-week high, opened marginally lower but soon rebounded.
The stock was trading 0.12% higher at ₹1,565.50 on the BSE shortly after market opening on Friday.