Reliance Industries slapped with ₹56cr penalty, plans to appeal
28 Nov 2025

Reliance Industries Limited (RIL) has been slapped with a penalty of ₹56.44 crore by the Central Goods and Services Tax (CGST) department in Ahmedabad.

The penalty order, issued on November 25, relates to the interpretation of input tax credit as blocked credit without considering the service provider's classification of services.

RIL has said it will appeal against this decision.

RIL's response to penalty order
Appeal plans

The penalty order was received by Reliance Industries on November 27 via email.

It was issued under Section 74 of the Central Goods and Services Tax Act, 2017 and the Gujarat Goods and Services Tax, 2017.

In response to this development, RIL has announced its intention to appeal against the decision.

Impact of penalty on RIL's operations
Operational influence

Despite the hefty penalty, Reliance Industries has assured that it will not affect its operations or other activities.

The company said the financial impact of this order is only limited to the imposed fine.

However, it remains to be seen how this legal battle over input tax credit interpretation will unfold and what implications it may have for RIL's business in future.