Corporate
Reliance Industries Limited Faces Rs 56.44 Crore GST Penalty
Reliance Industries Limited (RIL) receives a Rs 56.44 crore penalty order from the CGST, Ahmedabad, over the interpretation of input tax credit as 'blocked credit'; RIL states no operational impact and intends to file an appeal.
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The Company received an order on November 25, 2025, from the Joint Commissioner, CGST, Ahmedabad. This order imposes a penalty of Rs. 56.44 crore under Section 74 of the Central Goods and Services Tax Act, 2017, the Gujarat Goods and Services Tax, 2017, and related provisions of the Integrated Goods and Services Act, 2017.
The Order interprets input tax credit that falls under blocked credit, overlooking the classification of services by the service provider. The Company plans to appeal the Order.
The financial impact of the Order is limited to the penalty imposed. There is no effect on the Company's operations or other activities due to the Order.