- 01 Aug 2024
- ICICI Securities
INFOSYS: GETS DEMAND NOTICE FOR GST EVASION
INFY - 1602 Change: -6.60 (-0.41 %)News: Infosys informed the stock exchange that following recent news reports about GST non-payment related to overseas branch expenses, Karnataka State GST authorities issued a pre-show cause notice for ₹32,403 crore covering the period from July 2017 to March 2022.
Views: Infosys has responded to this notice and is also addressing a similar pre-show cause notice from the Director General of GST Intelligence (DGGI). Infosys maintains that GST is not applicable to these expenses as per regulations and a recent Circular from the CBIC, which states services provided by overseas branches to the Indian entity are GST-exempt. Infosys emphasizes it has paid all GST dues, is fully compliant with regulations, and GST payments are eligible for credit or refund against IT service exports. Nonetheless, news is sentimentally negative.
Impact: Negative