No Relief of GST Demand of Rs.32,000 Cr to Infosys

The Indian government has decided not to relax the tax demand of Rs.32,000 crore issued to Infosys which is one of the country’s largest IT services firms. This tax demand was issued last month under Goods and Services Tax (GST) rules, according to the government source.

Infosys has requested ten days to respond to tax notices after meeting with tax officials. The company received a request to pay taxes related to services received from overseas branches between July 2017 to 2021-22 financial year. This demand represents 85% of Infosys’ revenue for the quarter ending June 30.

Shares of Infosys were initially up by 1.6% due to a broader market rebound. They briefly reduced gains to about 0.3% after news of tax demand. Eventually, shares settled with a 1.2% increase.

In a recent notification to stock exchanges, Infosys mentioned that another tax demand for Rs.38980 crore for the financial year 2017-18 has been closed. The company has consistently maintained that it has paid all its dues and is compliant with central and state regulations.

The finance ministry of India and Infosys did not immediately respond to requests for comments on this matter. This firm stance by the government indicates its commitment to enforcing GST rules and ensuring compliance by all companies regardless of size. Infosys being a major player in the IT sector, will now have to address this substantial tax demand in the coming days.