Quick Summary
Over the past six to seven weeks, leading Indian IT firms, including Tata Consultancy Services (TCS), Infosys, Tech Mahindra, and LTIMindtree, have been hit with a wave of penalty and tax orders from GST departments nationwide. These companies have collectively received at least 21 penalty notices from various GST offices in Punjab, Uttar Pradesh, Delhi, Visakhapatnam, Rajasthan, Bhubaneswar, Chennai, Bengaluru, and Mumbai. Although the penalties and tax amounts are relatively minor - ranging f
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FAQ :
Leading Indian IT firms such as Tata Consultancy Services (TCS), Infosys, Tech Mahindra, and LTIMindtree have received GST notices.
Collectively, these companies have received at least 21 penalty notices from various GST offices across multiple states.
Industry experts believe the expansion of IT firms into smaller cities, where their operations may face closer scrutiny, is a contributing factor. The notices are related to the scrutiny of returns for FY 2019-20.
The tax and penalty amounts range from a few thousand to several crore rupees, but the firms are contesting most of these notices.
IT firms need to register for GST in every state they operate in, leading to complexity. They may face legal battles in smaller jurisdictions if discrepancies arise in their GST filings, and are bracing for more scrutiny as they expand.
Experts warn that more GST demands are likely for FY 2020-21 as deadlines approach, and divergence in interpreting GST provisions could complicate matters further, especially for firms operating across multiple states.
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