Infosys Accused of Evading Goods and Services Tax (GST) Worth Rs 32,000 Crore
According to an internal document seen by The Economics Times, Infosys has been accused of evading Goods and Services Tax (GST) amounting to Rs 32,000 crore. The Directorate General of GST Intelligence has reportedly issued a notice to the company for alleged tax evasion related to transactions with its overseas branch offices spanning from July 2017 to 2022.
The allegations revolve around the IT giant’s purported failure to pay Integrated Goods and Services Tax (IGST) under the Reverse Charge Mechanism on services received from its foreign branches. The total amount under question is reported to be Rs 32,403.46 crore.
The GST intelligence office contends that Infosys’ overseas branches have been providing services to the company, which are supposed to be treated as import of services under the IGST Act, 2017. The notice further alleges that Infosys included expenses incurred by its overseas branches in their export invoices from India and utilized these values to calculate eligible refunds.
As per the notice, “In lieu of receipt of supplies from overseas branch offices, the Company has paid consideration to the branch offices in the form of overseas branch expense.
