The Directorate General of GST Intelligence (DGGI) has been investigating  Infosys since 2020 in a case concerning the import of services by the IT giant from its branch offices. 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

“We only take up cases which are legally tenable as per prevailing GST law of the time,” Gupta said. 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 weighing the pros and cons — Infosys being a premier IT company of India — of the need to tax such transactions. That is the prerogative of the government and whatever the government decides, we will implement accordingly, Gupta said.

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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