Infosys accused of GST evasion of Rs 32,403 crore, know what the company said
New Delhi: The country’s second largest IT company Infosys has received a notice regarding alleged GST evasion of about Rs 32,403 crore. The company said in the information given to BSE that Karnataka State GST Authority has given notice regarding GST payment of approximately Rs 32,403 crore. This matter is between July, 2017 to March, 2022. This relates to the expenses of the overseas branch offices of Infosys Limited. According to the documents, the company is accused of not paying IGST on importing services. The company said that it has replied to the notice.
According to Infosys, the company has also received a show cause notice from the DG of GST Intelligence on the same matter and the company is in the process of replying to it. The company believes that as per the rules, GST is not applicable on such expenses. “Further, as per a recent circular of the Central Board of Indirect Taxes and Customs on the recommendations of the GST Council, services provided by foreign branches to the Indian entity are not covered under GST,” Infosys said.
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The company said it has paid all its GST dues and is fully compliant with central and state regulations on the matter. This is not the first time that the company has had a dispute with the GST department. In April, the Odisha GST authority had imposed a fine of Rs 1.46 lakh on the company for wrongly availing input tax credit. On Wednesday, the company’s shares closed at Rs 1868.05 with a fall of 0.48%. Its 52-week high is Rs 1,903.00. Infosys is the second largest IT company in the country after TCS.
