IT services company Infosys on Wednesday said that it has paid all its GST dues and has responded to a pre-show cause notice issued by Karnataka GST authorities for payment of GST of Rs. 32,403 crore for the period July 2017 to March 2022 towards the expenses incurred by overseas branch offices of the company.
Infosys Issues Statement
The company said in stock market filing that it believes that as per regulations, GST is not applicable on these expenses. Infosys said is fully in compliance with the central and state regulations on the matter.
"Karnataka State GST authorities have 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 responded to the pre-show cause notice.
Subsequent to the publication of the news articles the Company has also received a pre-show cause notice from Director General of GST Intelligence on the same matter and the Company is in the process of responding to the same," the company said in its statement. | Image: Wikipedia (Representative)
Subsequent to the publication of the news articles the Company has also received a pre-show cause notice from Director General of GST Intelligence on the same matter and the Company is in the process of responding to the same," the company said in its statement.
GST Not Applicable To These Expenses
"The Company believes that as per regulations, GST is not applicable on these expenses. Additionally, as per a recent Circular (circular number 210/4/2024 dated June 26, 2024) issued by the Central Board of Indirect Taxes and Customs on the recommendations of the GST Council, services provided by the overseas branches to Indian entity are not subject to GST," the statement added.
The clarification came with respect to news articles published earlier today on non- payment of GST in relation to expenses incurred by the overseas branches of the Company. | Representational Image
The clarification came with respect to news articles published earlier today on non- payment of GST in relation to expenses incurred by the overseas branches of the Company.
Infosys said GST payments are eligible for credit or refund against export of IT services.
"Infosys has paid all its GST dues and is fully in compliance with the central and state regulations on this matter," the statement said
