Mukesh Ambani-led Reliance Industries has received a tax penalty of Rs 56.44 crore from the Joint Commissioner of Central GST, Ahmedabad.
The company has said it will challenge the order. It intends to file an appeal against the decision and defend its position on the treatment of input tax credit (ITC).
Reliance Industries to challenge GST order
“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 Industries said in its regulatory filing.
The financial impact of the order is limited to the penalty amount. The company clarified that there is no effect on its operations or other business activities due to the order.
The order dated November 25 is imposed under Section 74 of the Central Goods and Services Tax Act, 2017, the Gujarat Goods and Services Tax Act, 2017, along with applicable provisions of the Integrated Goods and Services Tax Act, 2017.
Share price of Reliance Industries
The share price of Reliance Industries, Nifty overweight, has gained 28.59% so far this year.