Infosys Receives ₹415 Crore GST Show Cause Notice for Ineligible ITC Refunds
The Directorate General of GST Intelligence (DGGI) has issued a massive Show Cause Notice (SCN) to Infosys Ltd. proposing a demand of over ₹415 crore for the alleged wrongful utilization or refund of Input Tax Credit (ITC).
Key Details of the Demand
- Company Affected: Infosys Ltd.
- Issuing Authority: Directorate General of GST Intelligence (DGGI).
- Total Amount Demanded: The SCN proposes a tax demand, interest, and penalty totaling ₹415.70 crore.
- Period Covered: The notice primarily relates to alleged discrepancies and ineligibility concerning the refund of Input Tax Credit (ITC) claimed by Infosys. As a major exporter of IT services, Infosys is eligible to claim a refund of ITC accumulated on inputs used in providing zero-rated (export) supplies. The dispute centers on the eligibility of this claimed credit.
- Company’s Stance: Infosys informed the stock exchange that it is currently reviewing the contents of the SCN. The company intends to file a detailed reply to the DGGI and pursue appropriate legal remedies to contest the proposed demand.
- Financial Impact: Infosys stated that the demand is not expected to have any material financial impact on its operations.
Source :- Times Of India