GST UPDATE

????Desk of CA. Praveen Sharma Series-546???? 

Infosys slapped with ?32,403 crore GST notice for overseas expenses

?Infosys has received a ?32,403 crore pre-show cause notice from Karnataka State GST authorities and the Director General of GST Intelligence for GST on expenses incurred by its overseas branches from July 2017 to March 2022. 

?Infosys, in its stock exchange filing, contends that GST is not applicable on these expenses based on a recent CBIC circular and regulations, and that it is in full compliance with all GST due 

?The authorities allege Infosys should pay IGST under the reverse charge mechanism for services received from its overseas branches.

 ?The demanded amount exceeds Infosys' annual profit, with the company earning ?6,368 crore in net profit and ?39,315 crore in revenue for the June quarter.

 ?This notice is particularly noteworthy as Infosys manages the GSTN portal.

LINK:https://www.linkedin.com/pulse/desk-ca-praveen-sharma-series-546-infosys-slapped-gst-my5nc

CA. Praveen Sharma

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