Infosys gets relief in Rs. 32K Crore GST Matter

The Karnataka GST department has raised a notice against Infosys for the period from July 2017 to March 2022 for not paying IGST under the reverse charge mechanism for services imported by the company’s overseas branches. The GST amount mentioned on the pre-show cause notice was Rs. 32,403 crore. However, as per the latest information, the Directorate General of GST Intelligence (DGGI) has closed the pre-show cause notice sent to Infosys in the Rs. 32,403 crore GST Case.

Infosys, in a stock exchange filing on June 6, 2025, expressed relief, saying that the company has been notified by the DGGI about the closure of this pre-show cause notice for the financial years 2018-19 and 2021-22. “In continuation of our earlier communications on July 31, 2024, Aug 1, 2024, and Aug 3, 2024, on GST, this is to inform that the company today received a communication from the DGGI closing the pre-show cause notice proceedings for the financial years 2018-19 to 2021-22,” the company said.

The company has confirmed that it followed all the tax regulations and has paid all dues. Additionally, the company had also replied to the DGGI’s notices.

This closure brings major relief to the company as it is no longer facing the huge tax demand. Additionally, it protects the company’s reputation, restoring investor confidence.