For a commutative ring $R$, let $\mathrm{mod-}R$ denote the category of finitely generated $R$-modules. Let $\mathcal C$ be an abelian, full, isomorphism closed (i.e. $M\cong N$ in $\mathrm{mod-}R$ and $M\in Ob(\mathcal C)\implies N\in Ob(\mathcal C)$) subcategory of $\mathrm{mod-}R$.
The Grothendieck group of $\mathcal C$, usually denoted by $G(\mathcal C)$, is defined as $$\dfrac{\bigoplus_{X\in \operatorname{Ob}(\mathcal C)}\mathbb Z[X]}{\langle [A]-[B]+[C] \mid 0\to A \to B \to C\to 0 \text{ is exact} \rangle }$$ where $[X]$ denotes the isomorphism class of $X$.
Now if for every $M,N\in Ob(\mathcal C)$, we also have $M\otimes_R N\in Ob(\mathcal C)$, then the $\mathbb Z$-module $$\bigoplus_{X\in \operatorname{Ob}(\mathcal C)}\mathbb Z[X]$$ can be given a $\mathbb Z$-algebra structure where the ring multiplication is induced by the tensor product. If every module in $\mathcal C$ is flat, then the $\mathbb Z$-submodule $${\langle [A]-[B]+[C] \mid 0\to A \to B \to C\to 0 \text{ is exact} \rangle }$$ of $\bigoplus_{X\in \operatorname{Ob}(\mathcal C)}\mathbb Z[X]$ is also an ideal, so the Grothendieck group actually becomes a commutative ring where the product structure is induced from tensor product.
My question is: What happens in case not every module of $\mathcal C$ necessarily flat? Does the Grothendieck group necessarily become a commutative ring where the product structure is induced from tensor product? I'm particularly interested in the case of $G(\mathrm{mod-}R)$: is it necessarily a commutative ring?
No. For instance, let $k$ be a field and let $R=k[x]/(x^2)$. Then every finitely generated $R$-module is a direct sum of copies of $R$ and $R/(x)$, and it is easy to see that $G(\mathrm{mod}R)$ is freely generated as an abelian group by $[R/(x)]$, with $[R]=2[R/(x)]$ (you can see this since there is a homomorphism $G(\mathrm{mod}R)\to\mathbb{Z}$ sending a module to its dimension as a $k$-vector space). But this group does not form a ring under the tensor product, since $R\otimes R\cong R$ and $R/(x)\otimes R/(x)\cong R/(x)$ so we would need to have both $[R]^2=[R]=2[R/(x)]$ and $[R]^2=(2[R/(x)])^2=4[R/(x)]$.