Infosys Update: The problems of the country’s second largest IT company Infosys have increased. The company has received a notice for GST evasion of Rs 32,000 crore. The Directorate General of GST Intelligence has issued a notice to the company.
According to the report of ET, this notice has been issued to Infosys for GST Demand on 30 July 2024. This notice of GST demand is for July 2017 to the financial year 2021-22. According to the document, Infosys is under investigation for not paying IGST on import of services as a recipient of services. According to DGGI, the company opens overseas branches to provide services to clients under the agreement. These branches and the company are treated as Distinct Persons under the IGST Act.
The document states that, in lieu of supplies received from overseas branch offices, the company has paid overseas branch expenses to the branch offices. Therefore, GST is payable on Infosys Limited for receiving supplies from branches located outside India under the Reverse Charge Mechanism. Reverse Charge Mechanism (RCM) in Goods and Services Tax is a system in which the recipient of goods and services has to pay tax instead of the supplier. The document states that the investigation against Infosys is still going on.
Economic Times has quoted a source as saying that Infosys has received a notice from DGGI for investigation. But the company believes that it has fully complied with the state and central GST laws. However, Infosys has not commented on this matter.
read this also
Budget 2024: Central trade unions will open a front against the government’s budget, protest will be announced on the anniversary of the Quit India Movement
