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The Print
an hour ago
- Business
- The Print
Infosys gets huge relief on GST as DGGI closes Rs 32,400 cr pre-show cause notice
Mid-last year, the goods and services tax (GST) authorities had slapped Rs 32,403 crore notice on Infosys for services availed by the company from its overseas branches for five years starting 2017. New Delhi, Jun 7 (PTI) In a major relief for Infosys, the Director General of GST Intelligence has closed pre-show cause notice proceedings against the company for financial years 2018-19 to 2021-22 involving a staggering Rs 32,403 crore in GST dues. The GST demand, in fact, exceeds Infosys's annual profits (net profit for full FY25 stood at Rs 26,713 crore), and its closure now is bound to come as a significant relief for the tech major. The Bengaluru-headquartered company, in a BSE filing, said with the receipt of the latest communication from DGGI 'this matter stands closed'. 'In continuation to our earlier communications on July 31, 2024, August 1, 2024 and August 3,2024 on GST, this is to inform that the company has today received a communication from the Director General of GST Intelligence (DGGI) closing the pre-show cause notice proceedings for the financial years 2018-19 to 2021-22,' the company said in the filing late Friday evening. Infosys — which competes with the likes of TCS, Wipro and others for global IT contracts — said it had received and responded to a pre-show cause notice issued by DGGI for the period July 2017 to March 2022 on the issue of non-payment of IGST under Reverse Charge Mechanism. 'The GST amount as per the pre-show cause notice for this period was Rs 32,403 crore. The company had on August 3, 2024 received a communication from DGGI closing the pre-show cause notice proceedings for the financial year 2017-2018. With the receipt of today's communication from DGGI, this matter stands closed,' Infosys said. In July last year, Infosys had informed that Karnataka State GST authorities issued a pre-show cause notice for payment of GST of Rs 32,403 crores for the period July 2017 to March 2022 towards the expenses incurred by overseas branch offices of Infosys Ltd, and added that the company has responded to the pre-show cause notice. 'The company has also received a pre-show cause notice from Director General of GST Intelligence on the same matter and the company is in the process of responding to the same,' the filing of July 2024 had said. All along, Infosys maintained that GST is not applicable on these expenses. 'Additionally, as per a recent circular issued by the Central Board of Indirect Taxes and Customs on the recommendations of the GST Council, services provided by the overseas branches to Indian entity are not subject to GST,' Infosys had argued back in July 2024. The tech firm had asserted GST payments are eligible for credit or refund against export of IT services. 'Infosys has paid all its GST dues and is fully in compliance with the central and state regulations on this matter,' the company had contended. The document sent to Infosys by GST authorities at that point had reportedly said, 'In lieu of receipt of supplies from overseas branch offices, the company has paid consideration to the branch offices in the form of overseas branch expense. Hence, M/s Infosys Ltd, Bengaluru is liable to pay IGST under reverse charge mechanism on supplies received from branches located outside India to the tune of Rs 32,403.46 crores for the period 2017-18 (July 2017 onwards) to 2021-22.' The Directorate General of GST Intelligence in Bengaluru had been of the opinion that Infosys did not pay the Integrated-GST (IGST) on the import of services as a recipient of services. For the just-ended March quarter, Infosys reported an 11.7 per cent decline in consolidated net profit to Rs 7,033 crore mainly on account of compensation to employees, and acquisitions during the reported period. The company has guided for a revenue growth of 0-3 per cent in constant currency terms in the current fiscal year, citing uncertainty in the environment. For the full FY25, profits saw a marginal increase of 1.8 per cent to Rs 26,713 crore; revenues climbed 6.06 per cent to reach Rs 1,62,990 crore — exceeding its guidance of 4.5-5 per cent for the full FY25. PTI MBI TRB This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
The Hindu
13 hours ago
- Business
- The Hindu
Infosys gets huge relief on GST as DGGI closes ₹32,400-crore pre-show cause notice
In a major relief for Infosys, the Director General of GST Intelligence has closed pre-show cause notice proceedings against the company for financial years 2018-19 to 2021-22 involving a staggering ₹32,403 crore in GST dues. The latest move effectively ends nearly a year-long GST saga for India's second-largest IT services firm. Mid-last year, the goods and services tax (GST) authorities had slapped ₹32,403 crore notice on Infosys for services availed by the company from its overseas branches for five years starting 2017. The GST demand, in fact, exceeds Infosys's annual profits — Infosys's net profit for full FY25 stood at ₹26,713 crore — and its closure now is bound to come as a significant relief for the tech major. Also Read | After ₹32,000 crore demand to Infosys, government said to mull GST notices to other IT majors The Bengaluru-headquartered company, in a BSE filing, said with the receipt of the latest communication from DGGI "this matter stands closed". 'In continuation to our earlier communications on July 31, 2024, August 1, 2024 and August 3,2024 on GST, this is to inform that the company has today received a communication from the Director General of GST Intelligence (DGGI) closing the pre-show cause notice proceedings for the financial years 2018-19 to 2021-22,' the company said in the filing late Friday (June 6, 2025) evening. Infosys, which competes with the likes of TCS, Wipro and others for global IT contracts, said it had received and responded to a pre-show cause notice issued by DGGI for the period July 2017 to March 2022 on the issue of non-payment of IGST under Reverse Charge Mechanism. 'The GST amount as per the pre-show cause notice for this period was Rs 32,403 crore. The company had on August 3, 2024 received a communication from DGGI closing the pre-show cause notice proceedings for the financial year 2017-2018. With the receipt of today's communication from DGGI, this matter stands closed,' Infosys said. Also Read | Nasscom defends Infosys, says ₹32,000-cr. GST notice shows lack of understanding of industry model In July last year, Infosys had informed that Karnataka State GST authorities issued a pre-show cause notice for payment of GST of ₹32,403 crores for the period July 2017 to March 2022 towards the expenses incurred by overseas branch offices of Infosys Ltd, and added that the company has responded to the pre-show cause notice. 'The company has also received a pre-show cause notice from Director General of GST Intelligence on the same matter and the company is in the process of responding to the same,' the filing of July 2024 had said. All along, Infosys maintained that GST is not applicable on these expenses. 'Additionally, as per a recent circular issued by the Central Board of Indirect Taxes and Customs on the recommendations of the GST Council, services provided by the overseas branches to Indian entity are not subject to GST,' Infosys had argued back in July 2024. The tech firm had asserted GST payments are eligible for credit or refund against export of IT services. 'Infosys has paid all its GST dues and is fully in compliance with the central and state regulations on this matter,' the company had contended. The document sent to Infosys by GST authorities at that point had reportedly said, 'In lieu of receipt of supplies from overseas branch offices, the company has paid consideration to the branch offices in the form of overseas branch expense. Hence, M/s Infosys Ltd, Bengaluru is liable to pay IGST under reverse charge mechanism on supplies received from branches located outside India to the tune of Rs 32,403.46 crores for the period 2017-18 (July 2017 onwards) to 2021-22.' The Directorate General of GST Intelligence in Bengaluru had been of the opinion that Infosys did not pay the Integrated-GST (IGST) on the import of services as a recipient of services. For the just-ended March quarter, Infosys reported an 11.7 per cent decline in consolidated net profit to ₹7,033 crore mainly on account of compensation to employees, and acquisitions during the reported period. The company has guided for a revenue growth of 0% to 3% in constant currency terms in the current fiscal year, citing uncertainty in the environment. For the full FY25, profits saw a marginal increase of 1.8% to ₹26,713 crore; revenues climbed 6.06% to reach ₹1,62,990 crore - exceeding its guidance of 4.5% to 5% for the full FY25.
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Business Standard
a day ago
- Business
- Business Standard
GST breather for Infosys: DGGI closes ₹32,400 cr pre-show cause notice
The Director General of GST Intelligence has closed pre-show cause notice proceedings against Infosys for financial years 2018-19 to 2021-22, involving a GST amount of Rs 32,403 crore, the company said in a statutory filing. With the receipt of the communication from DGGI, "this matter stands closed", India's second-largest IT company Infosys said. "In continuation to our earlier communications on July 31, 2024; August 1, 2024, and August 3, 2024, on GST, this is to inform that the company has today received a communication from the Director General of GST Intelligence (DGGI), closing the pre-show cause notice proceedings for the financial years 2018-19 to 2021-22," the company said in a filing late Friday evening. Infosys said it had received and responded to a pre-show cause notice issued by DGGI for the period July 2017 to March 2022 on the issue of non-payment of IGST under the Reverse Charge Mechanism. "The GST amount, as per the pre-show cause notice for this period, was Rs 32,403 crore. The company had on August 3, 2024, received a communication from DGGI, closing the pre-show cause notice proceedings for the financial year 2017-2018. With the receipt of today's communication from DGGI, this matter stands closed," Infosys said.
Time of India
2 days ago
- Business
- Time of India
Infosys gets clean chit in Rs 32k crore GST case
BENGALURU: The Director General of GST Intelligence (DGGI) has closed the pre-show cause notice proceedings against Infosys in the Rs 32,000-crore tax controversy. "In continuation of our earlier communications on July 31, 2024, Aug 1, 2024, and Aug 3, 2024, on GST, this is to inform that the company today received a communication from the DGGI closing the pre-show cause notice proceedings for the financial years 2018-19 to 2021-22," Infosys said in a stock exchange filing on Friday. "It may be noted that the company received and responded to a pre-show cause notice issued by DGGI for the period July 2017 to March 2022 on the issue of non-payment of IGST under the reverse charge mechanism. The GST amount as per the pre-show cause notice for this period was Rs 32,403 crore. "The company received a communication from DGGI on Aug 3, 2024, closing the pre-show cause notice proceedings for the financial year 2017-2018. With the receipt of today's communication from DGGI, this matter stands closed," the filing said. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
2 days ago
- Business
- Time of India
DGGI closes GST proceedings against Infosys
Bengaluru: The Director General of GST Intelligence (DGGI) closed the pre-show cause notice proceedings against Infosys in the Rs 32,000 crore tax controversy. "In continuation of our earlier communications on July 31, 2024, Aug 1, 2024, and Aug 3, 2024, on GST, this is to inform that the company today received a communication from the DGGI closing the pre-show cause notice proceedings for the financial years 2018-19 to 2021-22," Infosys said in a stock exchange filing on Friday. "It may be noted that the company received and responded to a pre-show cause notice issued by DGGI for the period July 2017 to March 2022 on the issue of non-payment of IGST under the reverse charge mechanism. The GST amount as per the pre-show cause notice for this period was Rs 32,403 crore. The company received a communication from DGGI on Aug 3, 2024, closing the pre-show cause notice proceedings for the financial year 2017-2018. With the receipt of today's communication from DGGI, this matter stands closed," the filing said. Last year, the DGGI filed an incident report which showed intelligence gathered by the officers of the DGGI Bangalore Zonal Unit indicated that Infosys received services from overseas branches and did not pay IGST (integrated goods and services tax) under RCM (reverse charge mechanism) on the import of services. The actions taken by DGGI were considered to be an "over-interpretation" of the law, according to tax officers and consultants who believe that the regulations clearly outline the proper handling of transactions between branches and headquarters. Get the latest lifestyle updates on Times of India, along with Eid wishes , messages , and quotes !
