Reliance Industries Limited (RIL) has been served a penalty order of Rs 56.44 crore by the Joint Commissioner of CGST, Ahmedabad, over a dispute related to input tax credit under the GST regime. The order, dated November 25, 2025, was issued under Section 74 of the Central Goods and Services Tax Act, 2017, alongside relevant Gujarat and Integrated GST provisions. The tax authorities have interpreted certain input tax credits claimed by RIL as blocked credits, leading to the substantial penalty.
RIL firmly contests this interpretation, stating that the order has overlooked the proper classification of services provided by the third-party service supplier. The conglomerate has declared its intention to file an appeal against the order and believes the penalty arises from a misapplication of GST rules.
Despite the significant penalty amount, Reliance has assured investors and stakeholders that the ruling will have no impact on its operational activities or ongoing business projects. The company disclosed the penalty order in an official regulatory filing and has emphasized that its financial impact is limited strictly to the penalty sum.
Meanwhile, Reliance’s shares have remained resilient in trading, reflecting confidence that legal recourse will lead to a favorable outcome.
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