Mumbai (Maharashtra) [India], July 31 : In response to the alleged non-payment of the Goods and Service Tax (GST) in relation to expenses incurred by overseas branches of the company, IT consulting firm Infosys said that it "has paid all its GST dues and is fully in compliance with the central and state regulations on this matter."
In a stock filing released on Wednesday, the company clarified that it had responded to a pre-show cause notice issued by the Karnataka State GST authorities for the payment of GST of Rs 32,403 crores from the period of July 2017 to March 2022 for the expenses incurred by its overseas branch.
"The Company would like to clarify on this matter: Karnataka State GST authorities have issued a pre-show cause notice for payment of GST of Rs. 32,403 crores for the period July 2017 to March 2022 towards the expenses incurred by overseas branch offices of Infosys Limited. The Company has responded to the pre-show cause notice," it stated.
It further mentioned that following the allegations, the company had received a pre-show cause notice from the Director General of GST Intelligence on the same matter and it is in the process of responding to the same.
It further stated that, as per regulations, GST was not applicable on these expenses and claimed that services provided by the overseas branches to Indian entity are not subject to GST.
"The Company believes that, as per regulations, GST is not applicable on these expenses. Additionally, as per a recent Circular (circular number 210/4/2024 dated June 26, 2024) issued by the Central Board of Indirect Taxes and Customs on the recommendations of the GST Council, services provided by the overseas branches to Indian entity are not subject to GST," it stated.
The company further noted that the GST payments were eligible for credit or refund against export of IT services and that the company had paid all its GST dues and was fully in compliance with the central and state regulations on this matter.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor