– Infosys has received communication from Karnataka State Authorities withdrawing the ‘pre-show cause’ notice regarding a GST claim
– Authorities have directed Infosys to submit further response to Directorate General of GST Intelligence central authority
– Shares of Infosys were trading 1% lower following the update
– IT services company received Rs 32,403 crore notice for services availed from overseas branches
– Infosys maintains that GST payments are eligible for credit or refund against export of IT services
– Directorate General of GST Intelligence alleged that Infosys did not pay IGST on import of services as recipient
– Nasscom defended Infosys, stating that tax demand reflects misunderstanding of industry’s operating model
– Multiple companies facing litigation, uncertainty due to GST enforcement actions according to Nasscom.