Infosys Clarifies GST Payment Compliance Amid Allegations
Infosys, an IT consulting firm, has responded to allegations regarding the non-payment of Goods and Service Tax (GST) for expenses incurred by its overseas branches. The company stated that it has paid all its GST dues and is fully compliant with central and state regulations.
In a stock filing, Infosys clarified that the Karnataka State GST authorities issued a pre-show cause notice for the payment of GST amounting to Rs 32,403 crores for the period from July 2017 to March 2022. The company has responded to this notice.
Additionally, Infosys received a pre-show cause notice from the Director General of GST Intelligence on the same matter and is in the process of responding. The company believes that GST is not applicable to these expenses and that services provided by overseas branches to the Indian entity are not subject to GST, as per a recent circular issued by the Central Board of Indirect Taxes and Customs.
Infosys also noted that GST payments are eligible for credit or refund against the export of IT services and reiterated its compliance with all GST regulations.
Doubts Revealed
Infosys -: Infosys is a big company in India that helps other companies with technology and computer-related services.
GST -: GST stands for Goods and Services Tax. It is a tax that people and companies in India have to pay when they buy or sell goods and services.
Karnataka State GST authorities -: These are the officials in the state of Karnataka who make sure that people and companies are paying their GST correctly.
pre-show cause notice -: This is a warning letter sent by tax authorities to a company, asking them to explain why they haven’t paid a certain amount of tax.
Rs 32,403 crores -: This is a very large amount of money in Indian currency, rupees. One crore is equal to 10 million rupees.
overseas branches -: These are offices or parts of a company that are located in other countries, not in India.
July 2017 to March 2022 -: This is the time period from the middle of 2017 to the beginning of 2022.
central and state regulations -: These are the rules made by the central (national) government and the state governments in India that everyone has to follow.
