GST Notice on Infosys Highlights Industry-Wide Issues

Nasscom criticizes a recent Rs 32,403 crore GST notice issued to Infosys, highlighting a lack of understanding of the IT industry's operating model by authorities. Nasscom calls for adherence to government circulars to avoid unnecessary litigation, emphasizing the negative impact on India's business environment due to such practices.

Nasscom has criticized a Rs 32,403 crore GST notice issued to Infosys, asserting that it reflects a misunderstanding of the IT industry's operating model. Multiple companies are facing similar legal challenges and uncertainty, affecting investor and customer confidence.

The apex IT body stressed that government circulars issued based on GST Council recommendations should be honored. Nasscom pointed out that the Karnataka High Court had stayed a similar notice issued to another large IT firm, emphasizing the need for clear enforcement of policies to avoid litigation.

Nasscom remains committed to collaborating with the government for ease of doing business in India. The organization highlighted the importance of accelerating services exports to achieve the national goal of 'Viksit Bharat' and attract global tech investment.

(With inputs from agencies.)