GST Demand Notice: Recently, Infosys, the giant company of the IT sector, got into a big crisis. It received a GST notice of $4 billion (about Rs 33,500 crore). There was a lot of commotion in the IT industry regarding this. Also, this type of tax demand was criticized heavily. Due to this, now the central government is considering withdrawing this huge GST notice. If this decision is taken, Infosys will get a big relief.
Government can withdraw the tax demand
A Reuters report citing sources has claimed that the government is now going to withdraw this tax demand made for the year 2017. This notice was sent to Infosys last month. According to the report, the Finance Ministry believes that the notice was sent to Infosys as per the rules. But, this is against the principles of not imposing tax on export of services. However, the Finance Ministry and Infosys have currently refused to say anything on this matter.
It can be announced in the GST Council meeting
Sources have claimed that apart from this, the government can also announce the withdrawal of GST notices worth about $1 billion sent to 10 foreign airlines like Etihad and British Airways operating in India. It is believed that an announcement in this regard can be made after the meeting of the GST Council chaired by Finance Minister Nirmala Sitharaman and comprising state finance ministers on September 9.
Mohandas Pai had called this notice tax terrorism
Former Infosys board member and CFO Mohandas Pai had called this notice tax terrorism. Last week, the company’s vice president Sunil Kumar Dhareshwar had also met the officials regarding this notice. Apart from this, the IT industry body NASSC had also appealed to the government to intervene in this matter. It also called it against the ease of doing business.
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