Infosys Hit with Rs 32,403 Crore GST Notice over Overseas Branch Services

GST authorities have issued a Rs 32,403 crore notice to Infosys for services availed from its overseas branches from 2017 to 2022. Infosys argues GST is not applicable on these expenses and cites compliance with central and state regulations. The issue involves the reverse charge mechanism under IGST.

The GST authorities have issued a Rs 32,403 crore notice to Infosys, citing services availed by the company from its overseas branches between 2017 and 2022.

Infosys responded through a stock exchange filing, terming it a 'pre-show cause' notice and arguing that GST is not applicable on these expenses. They referenced a recent Circular by the Central Board of Indirect Taxes and Customs which supports their stance.

This demand, which exceeds Infosys' annual profit, is particularly noteworthy given the company's role in managing the GST Network (GSTN) portal, which Infosys developed under a Rs 1,380 crore contract in 2015.