Relief to Infosys on GST demand likely to take longer amid law panel mulling over options
The issue surrounding a Goods and Services Tax (GST) demand notice for approximately Rs 32,000 crore against information technology (IT) major Infosys is likely to take longer amid the GST law committee still deliberating its options before any decision can be brought up before the GST Council for its approval.
According to sources familiar with the matter, the GST Council's upcoming meeting on December 21 will not address the relief for Infosys, as the matter is still not on the agenda.
"Infosys GST notice issue is not yet resolved. However, it's not on the agenda for the Council meeting slated to be held on December 21. It has to be deliberated by the law committee first," a government official told Moneycontrol.
Another source familiar with the discussions indicated that a nuanced clarification to the circular issued on June 26, 2024 (Circular 210), may be considered in a bid to provide relief to Infosys. The circular primarily addresses issues related to the import of services by entities from related persons or their other establishments outside India, where the recipient is eligible for full input tax credit (ITC). However, in the case of Infosys, the company’s overseas branch offices did not meet the criteria for claiming full ITC, which led to complications with the application of the circular.
