Infosys gets GST demand for alleged tax evasion of Rs 32k cr, company says it has paid all dues
India’s second-largest IT company Infosys has received demand for alleged tax evasion of over Rs 32,000 crore from the Directorate General of GST Intelligence (DGGI), according to a document viewed by Moneycontrol.
"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. Hence, M/s Infosys Ltd, Bengaluru is liable to pay IGST under reverse charge mechanism on supplies received from branches located outside India to the tune of Rs. 32,403.46 crores for the period 2017-18 (July 2017 onwards) to 2021-22.," the document read.
The Reverse Charge Mechanism (RCM) in Goods and Services Tax (GST) is a system where the recipient of goods or services is liable to pay the tax instead of the supplier.
The document further says that Infosys was including the expenses incurred towards overseas branches as part of their export invoice from India and basis the said export values, was computing the eligible refund.
