Nasscom Stands by Infosys Amid Rs 32,403 Crore GST Notice

Nasscom has backed Infosys over a Rs 32,403 crore GST notice, highlighting a misunderstanding of the industry's operating model. The industry body stresses the need for clear compliance obligations to boost India’s tech investments and ease of doing business. Infosys refutes the GST applicability on expenses incurred by its overseas branches.

On Thursday, the apex IT association Nasscom extended its support to Infosys, which is currently facing a Rs 32,403 crore GST notice. Nasscom argues that this move epitomizes a lack of understanding regarding the IT industry's operational model.

Highlighting issues related to GST applicability through the reverse charge mechanism (RCM), Nasscom pointed out the ongoing litigation, uncertainty, and investor and customer concerns that multiple companies are encountering. The association emphasized the necessity of unambiguous compliance obligations to mitigate such challenges.

Nasscom highlighted that accelerating services exports is critical to realizing India's 'Viksit Bharat' ambition and attracting global tech investment. It called for a supportive policy environment and ease of doing business, stressing that GST Council recommendations should be adhered to in enforcement actions to avoid business uncertainty.

(With inputs from agencies.)