Key Takeaways
- The Karnataka government has withdrawn a GST notice against Infosys, directing the company to submit responses to central authorities.
- Infosys has denied any payment of GST, saying the company has paid all its GST dues and is fully in compliance with central and state regulations.
- The company has noted that GST payments are eligible for credit or refund against the export of IT services, not on expenses incurred by overseas branch offices.
New Delhi: A Day after Infosys denied evading any payment of GST, the Karnataka government has withdrawn the “pre-show cause” notice against the IT firm but directed the company to submit its response to central authorities.
“The Company has received a communication from Karnataka State authorities withdrawing the pre-show cause notice and has directed the Company to submit further responses to DGGI central authority on this matter,” Infosys said in a regulatory filing with the stock exchanges.
Infosys had strongly denied evasion of any payment of GST, saying the company has paid all its GST dues and is “fully in compliance” with the central and state regulations on this matter.
Infosys had said that it is important to note that the GST payments are eligible for credit or refund against the export of IT services and not on expenses incurred by overseas branch offices of Infosys Limited.
Karnataka State GST authorities had issued a pre-show cause notice for payment of GST of Rs. 32,403 crores for the period July 2017 to March 2022 towards the expenses incurred by overseas branch offices of Infosys Limited.
The company has also received a pre-show cause notice from the Director General of GST Intelligence on the same matter, and the company is in the process of responding to it.
