Infosys gets ₹3,898 crore partial GST tax relief for FY 2017-18 out of the ₹32,403 crore tax notice for 2017-22
Infosys had received a tax notice of ₹32,403 crore for unpaid IGST under the reverse charge mechanism for services from its overseas branches from 2017-22
Infosys Ltd has been given a tax relief of ₹3,898 crore for the financial year 2017-18, the IT major wrote in a company filing to the exchanges on Saturday.
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“The Company had received and responded to a pre-show cause notice issued by DGGI for the period July 2017 to March 2022,” the filing read. “The Company has now received a communication from DGGI closing the pre-show cause notice proceedings for the financial year 2017-2018. The GST amount as per the pre-show cause notice for this period was Rs. 3,898 Crs.”
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The Directorate General of Goods and Services Tax Intelligence (DGGI) is the investigative arm of Goods and Services Tax (GST).
This comes after the Karnataka state GST body withdrew the ₹32,403 crore notice to the IT giant for unpaid integrated GST (IGST) under the reverse charge mechanism (RCM) for services availed from its overseas branches from 2017 to 2022.
The notices served for the financial years 2018-19, 2019-20, 2020-21, 2021-22 didn't get any mention, and the GST demand raised for 2017-18 is also getting time barred, according to a Business Standard report.
What will happen to the remaining tax notices of Infosys?
The Central Board of Indirect Taxes and Customs (CBIC) is reviewing the matter as the deemed market value of import of services will be NIL if the full input tax credit is available, but whether Infosys is eligible for this is still a question, the report cited anonymous sources as saying.
The notice for the rest of the years may also be likely withdrawn over the coming days, according to an Indian Express report citing unnamed officials.