IT giant Infosys has successfully resolved a major tax dispute, with the Directorate General of GST Intelligence (DGGI) officially closing a Rs 32,403 crore GST demand notice. The dispute concerned allegations of non-payment of IGST on services from overseas branches between July 2017 and March 2022. Infosys maintained its compliance, and the DGGI's closure of the pre-show cause notice proceedings brings the matter to a definitive end, boosting investor confidence and offering relief to the wider Indian IT sector.
Infosys has achieved a significant legal victory with the Directorate General of GST Intelligence (DGGI) officially closing a massive GST demand notice amounting to Rs 32,403 crore. This decision ends a prolonged tax dispute that had been under intense scrutiny since July 2024.
Background of the Dispute
The controversy arose from allegations that Infosys had not paid Integrated GST (IGST) under the Reverse Charge Mechanism (RCM) for services availed from its overseas branches during the period
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FAQ :
The GST demand notice issued to Infosys amounted to Rs 32,403 crore.
The Directorate General of GST Intelligence (DGGI) issued the GST demand notice.
The dispute arose from allegations that Infosys had not paid Integrated GST (IGST) under the Reverse Charge Mechanism (RCM) for services availed from its overseas branches.
The dispute covered the period from July 2017 to March 2022, specifically financial years 2017-18 to 2021-22.
Yes, Infosys confirmed receipt of official communication from the DGGI dated June 6, 2025, stating the closure of the pre-show cause notice proceedings.
Following the announcement, Infosys shares closed 0.62% higher at Rs 1,564.05 on June 6, 2025.