Reliance Industries Receives ₹56.44 Crore GST Penalty Order from CGST Ahmedabad

Reliance Industries Limited has received an order dated November 25, 2025, from the Joint Commissioner of CGST, Ahmedabad, imposing a penalty of ₹56.44 crore.

The penalty has been levied under Section 74 of the Central Goods and Services Tax Act, 2017, along with applicable provisions under the Gujarat GST Act and the Integrated GST Act.

Basis of the Penalty

The penalty stems from the tax department’s interpretation of input tax credit treated as blocked credit. According to the company, the order does not consider the correct classification of services provided by the service provider. Reliance believes the interpretation is inconsistent with GST provisions and therefore intends to contest the ruling.

Company's Response and Next Steps

Reliance Industries has stated that it will file an appeal against the order before the appropriate authority. The company maintains that the penalty arises from an incorrect view of input tax credit eligibility and expects the matter to be reassessed during the appeal process.

Impact on Operations

The financial impact of the order is limited to the penalty amount of ₹56.44 crore. The company has clarified that there is no effect on its operations, projects, or any other business activities.

Reliance Industries Share Price Performance

On November 28, 2025, Reliance Industries share price (NSE: RELIANCE) opened at ₹1,568.00, touching the day’s high at ₹1,581.30, as of 10:44 AM on the NSE.

Also Read: Reliance Industries Market Valuation Crosses ₹21 Lakh Crore!

Conclusion

Despite the penalty, Reliance Industries remains confident in its legal position and is proceeding with a formal appeal. With no operational disruptions, the company expects a fair resolution once the matter is reviewed by the appellate authority.

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