The Directorate General of GST Intelligence (DGGI) has been investigating the Infosys case since 2020. Once the company files a reply to a pre-show cause notice, the DGGI will  take a decision on the matter, said Anil Kumar Gupta, Principal DG of DGGI, in an exclusive interaction with CNBC-TV18.  The case concerns the import of services by Infosys from their branch offices.

“We only take up cases which are legally tenable as per prevailing GST law of the time,” Gupta said.

Infosys is facing claims from central GST intelligence authorities. The DGGI has accused Infosys of tax evasion amounting to over ₹32,403 crore for the period July 2017 to March 2022.

“DGGI was investigating this case since 2020 and in between somewhere towards the beginning of this current financial year, about February-March, we came to know that state GST is also investigating into this case. And (because) multiple agencies are investigating the same taxpayer, as per the mandate of the GST Council, we transferred the case to state GST authorities in April or so,” he said.

Since then, the Infosys case has been transferred back to the Centre in July 2024

Gupta said the government is considering weighing all pros and cons — Infosys being a premier IT company of India — of whether such transactions need to be taxed or not . That is the prerogative of the government and whatever the government will decide, we will implement accordingly, Gupta added.

Shares of Infosys settled 1.53% lower at ₹1,877.60 apiece on the NSE today (September 30). The stock has risen 21% so far in 2024.

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