Infosys challenges ₹415cr GST notice in Karnataka HC
What's the story
Infosys has challenged a show-cause notice worth ₹415 crore issued by the Directorate General of GST Intelligence (DGGI). The IT giant has moved the Karnataka High Court, contesting claims that it wrongly availed input tax credit (ITC) refunds on services provided by its overseas branches. The DGGI had earlier sought details on the company's GST refund claims in May this year.
Company clarification
DGGI sought details on GST refund claims in May
In response to the DGGI's inquiry, Infosys said it provided the requested information and held several meetings with officials. However, despite requesting more time to respond to a pre-show cause notice dated July 30, the DGGI issued a final notice on August 12 for ₹414.88 crore (excluding interest and penalties). The agency contends that services rendered by Infosys's overseas branches don't qualify as 'export of services' under the GST law.
Legal action
No tax demand as of date, says Infosys
Infosys has challenged the validity of the DGGI's notice by filing a writ petition in the Karnataka High Court on September 19, 2025. The company said it had evaluated the merits of the notice and acted on advice from external tax and legal experts. Infosys also clarified that "there is no tax demand as of date" in connection with this matter.
Compliance assurance
No material impact from this development: Infosys
Infosys has reiterated its full compliance with all central and state GST regulations. The company also emphasized that there is "no material impact" from this development. Infosys further assured that it will continue to make the necessary disclosures to stock exchanges under the Securities and Exchange Board of India (SEBI)'s listing obligations. This comes after a similar pre-show cause demand for alleged tax evasion of over ₹32,000 crore from the DGGI on July 31, 2024.