Infosys slapped with ₹32,403 crore GST notice for overseas expenses
✅Infosys has received a ₹32,403 crore pre-show cause notice from Karnataka State GST authorities and the Director General of GST Intelligence for GST on expenses incurred by its overseas branches from July 2017 to March 2022.
✅Infosys, in its stock exchange filing, contends that GST is not applicable on these expenses based on a recent CBIC circular and regulations, and that it is in full compliance with all GST due
✅The authorities allege Infosys should pay IGST under the reverse charge mechanism for services received from its overseas branches.
✅The demanded amount exceeds Infosys’ annual profit, with the company earning ₹6,368 crore in net profit and ₹39,315 crore in revenue for the June quarter.
✅This notice is particularly noteworthy as Infosys manages the GSTN portal of GST.
