Reliance Industries Faces Rs 56.44 Crore GST Penalty, Plans to Appeal

Mumbai, Nov 2025 : Mukesh Ambani-led Reliance Industries on Friday announced that it has received a penalty order of Rs 56.44 crore from the Joint Commissioner of CGST in Ahmedabad. The order, dated November 25, states that the company’s input tax credit (ITC) should be treated as blocked credit.

In an exchange filing, Reliance said the order was issued without considering the classification of services by the service provider. “The Company has received an order dated November 25 (‘Order’) from the Joint Commissioner, CGST, Ahmedabad, imposing 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 Act, 2017, read with applicable provisions of the Integrated Goods and Services Act, 2017,” the filing said.

Reliance received the order via email on November 27 at 11:04 am and has confirmed that it plans to appeal against the decision. The penalty was imposed under Section 74 of both the Central and Gujarat GST Acts. The company clarified that the order interprets the ITC as blocked credit while ignoring the service provider’s classification of services.

“The Company intends to file an appeal against the Order,” Reliance added, emphasizing that the financial impact is limited to the amount of the penalty. The company also noted that the order does not affect its operations or other business activities. “There is no impact on operations or other activities of the Company due to the Order,” it said in the regulatory filing.

Reliance’s shares, which have been on an upward trajectory and recently touched a new 52-week high, opened slightly lower in early trade on Friday but quickly recovered. The stock was trading 0.12 per cent higher at Rs 1,565.50 on the BSE Sensex shortly after the market opened.

This development comes amid a period of heightened scrutiny by tax authorities on large corporations, though analysts note that Reliance’s robust business operations and diversified portfolio are unlikely to be affected by the penalty. The company’s plan to appeal reflects its stance that the ITC classification under the order is disputable.