Reliance Industries gets Rs 56.44 crore penalty order from India's tax body

Mukesh Ambani-owned Reliance Industries said on Friday it has received a Rs. 56.44 crore penalty order from Joint Commissioner, CGST, Ahmedabad.

The Order, dated November 25, has been issued interpreting that the input tax credit falls under blocked credit, without considering how the service provider classified the services, Reliance said in an exchange filing.

Reliance shares, which has been on an upward trend and recently hit a 52-week high, opened tad lower on Friday but soon turned positive. The shares were trading 0.12% higher at Rs 1,565.50 apiece in initial trade on BSE Sensex.


Reliance said it plans to appeal against the Order, which the company received on November 27 by email at 11:04 am IST. The penalty order was imposed under Section 74 of the Central Goods and Services Tax Act, 2017, the Gujarat Goods and Services Tax, 2017.

However, Reliance said the financial impact of the penalty order is to the extent of the fine imposed and there is no impact on the oil-to-telecom conglomerate's operations or other activities.