look news india
Infosys Tax Evasion: The troubles of Infosys, one of the largest IT companies in the country, may increase, yes, a case of GST evasion has come to light by this famous IT company. According to media reports, Infosys is being investigated by the Directorate General of GST Intelligence for alleged evasion of more than Rs 32,000 crore in IGST.
The document dated July 30, 2024, states that the period of evasion is from July 2017 to 2021-2022. Infosys has come under the scanner for “non-payment of IGST on import of services as a recipient of services”, the document states.
Is being investigated
In media reports, DGGI says that because the company opens foreign branches to serve the customers under its agreement with the customers. Those branches and the company are considered as 'special persons' under the IGST Act. Thus, in return for supplies from the foreign branch office, the company has paid foreign branch expenses to the branch office.
Therefore, M/s Infosys Limited, Bangalore will have to pay GST under the reverse charge method on supplies received from branches located outside India. According to the report, further investigation is underway in this regard.
This is not the first case
A source close to the matter said Infosys has received a notice from the DGGI but the company believes it has fully complied with state and central GST laws. According to media reports, there has been no official statement from Infosys yet. This is not the first time the company has faced flak from the GST department. In April, the company said the Odisha GST authority had imposed a fine of Rs 1.46 lakh on it for taking invalid input tax credit.