The GST department has sent a notice of Rs 32,403 crore to Infosys, the country’s second largest IT company. In this entire matter, the organization of IT companies, NASSCOM, has openly come out in support of Infosys. On sending Infosys GST notice, NASSCOM said that this step shows the lack of understanding related to the operation model of the industry. Without naming Infosys, NASSCOM said in a statement, “The recent media report of GST demand of more than Rs 320 billion shows the lack of understanding about the operation model of the industry.” What did the company say on the GST notice? GST department officials have sent a notice of Rs 32,403 crore to Infosys for the services received from its foreign branch for 5 years starting from the year 2017. However, Infosys has called it a ‘show-cause’ notice and said that according to it GST does not apply to these expenses. In this case, NASSCOM has emphasized that it is important that compliance obligations are not subject to multiple interpretations.
NASSCOM emphasized the need for ease of doing business
NASSCOM regretted this and said that many companies are facing avoidable litigation, uncertainty and concerns from investors and customers. The organization said that boosting service exports is very important for the ambition of ‘developed India’ and attracting global technology investment in India. It said, “This requires a supportive policy environment and ease of doing business. Government circulars issued on the recommendations of the GST Council should be respected in the enforcement system so that the notice does not create uncertainty and does not adversely affect India’s ease of doing business. ”
Infosys gets notice from Karnataka GST Department
Infosys said on Wednesday that the Karnataka GST Department has issued a notice for payment of GST of Rs 32,403 crore for the period July 2017 to March 2022 on the expenses incurred by its foreign branch office. The company has responded to the show cause notice. The company has also received a show cause notice from the Director General of GST Intelligence on the same matter and the company is in the process of responding to it. The company has argued that according to the rules, GST is not applicable on the expenses of units with foreign branches.
