Infosys Gets ₹32,000 Crore Tax Relief: GST Case Officially Closed

Jun 25

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Infosys Gets ₹32,000 Crore Tax Relief: Infosys Gets ₹32,000 Crore Tax Relief — GST Case Closed

India’s second-largest IT services company, Infosys, has received a major breather as the ₹32,403 crore GST tax demand raised by the Directorate General of GST Intelligence (DGGI) has now been officially closed. This brings closure to one of the most significant tax cases in India’s tech industry.

📌 Background: What Was the Tax Case?

The tax demand was related to Integrated GST (IGST) under Reverse Charge Mechanism, concerning services offered by Infosys' overseas branches to its Indian operations between FY 2017-18 and FY 2021-22.

In 2024, Infosys clarified that as per a CBIC circular issued under GST Council recommendations, services provided by foreign branches to the Indian parent are not subject to GST. Infosys had maintained that GST, if any, was either ineligible or refundable under IT export rules.

📄 What Did DGGI Say?

Infosys received formal communication on June 7, 2025, from DGGI closing the pre-show cause notice proceedings. This includes all periods between 2017–2022. The company had already received a similar closure notice for FY 2017-18 back in August 2024.

👉 “With the receipt of today’s communication from DGGI, this matter stands closed,” Infosys said in an exchange filing.

💡 What Does This Mean for Infosys?

No further liability: The ₹32,403 crore tax issue is resolved.
Stock sentiment: Likely positive investor response and market confidence.
Sector-wide implications: Sets precedent for how overseas branch services under GST are treated.

Are you an IT firm offering services across borders? You may be eligible for tax credits, refunds, or relief. Check with our GST Filing, or Export Compliance Services to ensure you're fully compliant.