Infosys Cleared of Rs 32,403 Crore GST Demand by Karnataka Authorities
Infosys has announced that the Karnataka State authorities have withdrawn a pre-show cause GST notice that demanded Rs 32,403 crore. This notice was related to expenses incurred by Infosys’ overseas branches from July 2017 to March 2022.
The company responded to the notice, stating that GST is not applicable to these expenses according to regulations. Infosys also cited a recent circular issued by the Central Board of Indirect Taxes and Customs, which clarified that services provided by overseas branches to the Indian entity are not subject to GST.
Infosys confirmed that it has paid all its GST dues and is fully compliant with both central and state regulations.
Doubts Revealed
Infosys -: Infosys is a big company in India that works with technology and helps other businesses with their computer needs.
GST -: GST stands for Goods and Services Tax. It is a tax that people and companies in India pay when they buy or sell things.
Karnataka Authorities -: These are the government officials in the state of Karnataka, which is a region in India. They make sure that companies follow the rules, including paying taxes.
Pre-show cause notice -: This is a warning letter from the government asking a company to explain why they should not be charged a certain amount of money.
Rs 32,403 crore -: This is a very large amount of money. ‘Rs’ stands for Indian Rupees, and ‘crore’ is a term used in India to represent ten million. So, Rs 32,403 crore is 324,030,000,000 rupees.
Overseas branches -: These are offices or parts of Infosys that are located in other countries, not in India.
Circular -: A circular is an official document or letter that gives information or instructions. In this case, it explains the rules about GST.
