Infosys Gets the All-Clear in ₹32,403 Crore GST Probe

Infosys, one of India’s leading IT services firms, has been cleared by the Directorate General of GST Intelligence (DGGI) in a massive ₹32,403 crore GST case. The investigation, which had raised concerns over alleged non-payment of Integrated GST (IGST) under the reverse charge mechanism for services received from overseas branches, has now been officially closed.

 

Key Highlights:

 

The DGGI has closed all proceedings related to the ₹32,403 crore GST case against Infosys, covering the period from July 2017 to March 2022.

 

Infosys had received a pre-show cause notice last year, alleging non-payment of IGST on services imported from its foreign branches.

 

The company responded to all notices, maintaining that GST was not applicable on these transactions as per recent government circulars and GST Council recommendations.

 

In August 2024, the DGGI had already closed the case for the financial year 2017–18. The latest communication extends this closure to the financial years 2018–19 to 2021–22, bringing the entire matter to an end.

 

Infosys confirmed in its stock exchange filings that there are now no pending dues or further action required in this case.

 

The company stated that it has always complied with all central and state GST regulations and that the GST claimed by DGGI did not apply to its expenses.

 

This clean chit removes a significant overhang for Infosys, which had faced market volatility and investor concerns when the case first surfaced.

 

Source: Times of India, Moneycontrol, Business Standard