Mumbai | November 28, 2025 | SKY LINK TIMES
Reliance Industries gets Rs 56 crore CGST penalty
Mukesh Ambani-led Reliance Industries Limited (RIL) has announced that it has received a penalty order of ₹56.44 crore from the Joint Commissioner of Central Goods and Services Tax (CGST), Ahmedabad, according to an official exchange filing on Friday, November 28.
The order, dated November 25, alleges that Reliance’s input tax credit (ITC) should be classified as blocked credit, and the penalty has been imposed under Section 74 of the Central Goods and Services Tax Act, 2017, and the Gujarat Goods and Services Tax Act, 2017, along with relevant provisions of the Integrated GST Act.
The company confirmed receiving the order via email on November 27 at 11:04 AM.
Table of Contents
Penalty Imposed Over Input Tax Credit Classification
RIL contests order, calling it legally incorrect
In the exchange filing, Reliance stated that the order was issued without considering how the service provider had classified the services and that the penalty was based on an incorrect interpretation of input tax credit rules.
> “The Order has been passed interpreting input tax credit falling under blocked credit ignoring classification of services by service provider. The Company intends to file an appeal against the Order,” Reliance said in the statement.
The company added that the penalty’s financial effect will only equal the amount levied and will not impact operations or ongoing activities.
Reliance to Challenge Penalty
Reliance said it is preparing to file a formal appeal, believing that the tax demand is unjustified and procedurally flawed. Section 74 of the GST Act deals with penalties involving alleged fraud or intentional misstatement in tax matters.
Tax experts indicate that classification disputes in GST are common, and many similar cases are settled in appeal tribunals or courts.
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Market Reaction: Stock Recovers Quickly
Despite the regulatory announcement, Reliance shares showed resilience in early trading. The stock opened slightly lower but rebounded quickly, trading 0.12% higher at ₹1,565.50 on the BSE Sensex shortly after markets opened.
The company’s shares recently touched a new 52-week high, reflecting strong investor confidence.
Market analysts say the penalty is unlikely to affect the company’s fundamentals or sector outlook significantly.
Conclusion
The dispute between Reliance Industries and the GST authorities now moves into the appeal stage. Investors and regulatory observers will watch closely to see how the case progresses and whether it sets any precedent for ITC-related classifications under GST law.
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