Infosys gets relief as DGGI drops Rs 32,403 crore GST demand notice

Mumbai, Jun 7, 2025

Infosys said it has received official communication from the GST intelligence authority closing pre-show cause proceedings for financial years 2017-18 to 2021-22

India's second-largest IT services firm Infosys has received relief in the goods and services tax (GST) demand notice for over Rs 30,000 crore.

Infosys said it had received communication from the Directorate General of GST Intelligence (DGGI) ‘closing’ the pre-show cause notice proceedings for the financial years 2018–19 to 2021–22.

In a regulatory filing, the firm said: “With the receipt of today’s communication from DGGI, this matter stands closed.”

In a separate regulatory filing to the National Stock Exchange, the company said: “It may be noted that the Company had received and responded to a pre-show cause notice issued by DGGI for the period July 2017 to March 2022 on the issue of non-payment of IGST under Reverse Charge Mechanism.”

The GST amount as per the pre-show cause notice for this period was Rs 32,403 crore.

“The Company had on 3 August 2024 received a communication from DGGI closing the pre-show cause notice proceedings for the financial year 2017–18,” the company said in the filing.

In July 2024, the DGGI had issued a pre-show cause notice to Infosys for Rs 32,403 crore, claiming that the firm had not paid GST under the reverse-charge mechanism for services imported from its foreign branches during the period spanning July 2017 to March 2022.

[The Business Standard]