Archive · 8 Jun 2025
Infosys Tax Notice of ₹32,403 Crore Closed by GST Department
The government has decided Infosys doesn't owe a massive tax bill of over ₹32,400 crore.
The issue was about whether Infosys should have paid taxes on services it got from its own offices abroad.
Infosys disagreed, saying it followed the rules, and the tax officials agreed, closing the case.
This is a big relief for the company, which made less profit last quarter due to increased employee expenses.
Infosys has had a ₹32,403 crore tax notice closed by the GST department.
The notice pertained to services from overseas offices between July 2017 and March 2022.
The DGGI issued a pre-show cause notice regarding the Reverse Charge Mechanism.
Infosys argued that GST rules, and later clarifications, rendered the services non-taxable.
The closure covers financial years 2018-19 to 2021-22, with 2017-18 already closed earlier.
- Who
- Infosys and the GST department
- What
- Closure of a ₹32,403 crore tax notice for Infosys
- When
- Between July 2017 and March 2022 (related to the original notice) and August 2024 and current date for the closure announcement
- Where
- N/A
- Why
- Infosys argued services from its overseas offices were not taxable under GST, and the authorities agreed.
- Tax Notice Amount
- ₹32,403 crore
- Department
- GST department
- Time Period of Notice
- July 2017 - March 2022
- Tax Mechanism Involved
- Reverse Charge Mechanism
- Affected Company
- Infosys
- Financial years covered in Closure
- Financial years 2018-19 to 2021-22 and previously for 2017-18
Sources
GST returns to become time-barred from July tax period
GST returns to become time-barred from July tax period
GST compliance: Returns to be time-barred after 3 years starting July 2025; experts warn of risks in absence of redressal
GSTR-3B filing to tighten: GSTN to lock monthly tax form from July 2025, changes allowed only via GSTR-1A
Monthly GST payment form 3B to become non-editable from July tax period
