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Infosys share price falls 1% as company gets ₹32,000 crore GST evasion notice: What IT major said
Infosys share price: Infosys refuted the notice even after which Infosys shares were trading at ₹1,850 on the NSE.
Infosys shares fell almost 1 per cent today (August 1) after the IT major received a GST notice citing a ₹32,000 crore tax evasion. The company refuted the notice even after which Infosys shares were trading at ₹1,850 on the NSE. The stock extended the previous day's 0.5 percent fall.
What tax evasion notice on Infosys noted?
The Directorate General of GST Intelligence said that Infosys is “liable to pay IGST under reverse charge mechanism on supplies received from branches located outside India to the tune of ₹32,403.46 crores for the period 2017-18 (July 2017 onwards) to 2021-22.”
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What Infosys said on the tax evasion notice?
Infosys said in a stock exchange filing that GST is not applicable on expenses claimed by DGGI. The company said that it has paid all dues and is fully in compliance with the central and state regulations on this matter.
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"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.
How has Infosys stock performed this year?
Infosys share price gained more than 20 per cent since January this year, outperforming benchmark NSE Nifty 50 index which has risen about 15 per cent in the same time.
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How Infosys performed in Q1 FY25?
In the Q1 FY25, Infosys reported its net profit rose 7.1 per cent on-year to ₹6,368 crore with revenue rising 3.6 per cent to ₹39,315 crore. The company raised its revenue growth guidance for the financial year 2024-25 to 3-4 per cent.
