Infosys Gets Relief: DGGI Closes ₹32,403 Cr GST Case

1.Background of the Case:

Infosys, a major Indian IT company, was under investigation by the Director General of GST Intelligence (DGGI).

The case involved non-payment of IGST (Integrated GST) under the Reverse Charge Mechanism.

2. Time Period Covered:

The GST issue was related to transactions during the period July 2017 to March 2022.

The financial years involved were 2018–19 to 2021–22.

3. Tax Amount Involved:

The pre-show cause notice from DGGI claimed a huge amount — ₹32,403 crore of unpaid GST.

4. What is a Pre-Show Cause Notice?

It’s a warning or intimation given by tax authorities before issuing an official show-cause notice.

It gives the company a chance to respond and explain their position.

5. Infosys’ Action:

Infosys had received the notice and replied to it during communications on July 31, Aug 1, and Aug 3, 2024.

The company explained its side to the authorities.

6. Final Decision by DGGI:

On Friday, Infosys informed the stock exchange that it has received a communication from DGGI.

The communication says that the pre-show cause notice proceedings are now closed.

This means Infosys is no longer under investigation in this ₹32,403 crore GST matter.