Infosys Breathes Sigh of Relief as GST Proceedings Conclude

Infosys, India's second-largest IT services company, has received a major reprieve as the Director General of GST Intelligence closed pre-show cause notice proceedings concerning Rs 32,403 crore in GST dues for the financial years 2018-19 through 2021-22.

The contentious GST demand, initially issued for services availed from overseas branches, overshadowed Infosys's annual profits. The company's handling of the situation and eventual resolution marks the end of a nearly year-long saga for the Bengaluru-based tech giant.

In communications last year, Infosys contended that certain expenses incurred by its overseas branches were not subject to GST, a stance supported by recent guidance from the Central Board of Indirect Taxes and Customs, leading to the recent closure.

(With inputs from agencies.)