Infosys Gets Big Relief, DGGI Closes Rs 32,400 Crore Pre-Show Cause Notice on GST

Infosys involved in large software companies have received relief from the pre-show cause notice related to the Rs 32,403 crore Goods and Services Tax (GST). The Director General of GST Intelligence (DGGI) has stopped the proceedings on this notice given to the company from FY 2018-19 to 2021-22.

Infosys has told the stock exchange in a filing that the matter has ended after getting information from DGGI. The company has said, “In the context of our communication in July and August last year, we are informing that the company has received information from DGGI to discontinue pre-show causes from FY 2018-19 to 2021-22.” The company has said that it received a pre-show cause notice from DGGI on the issue of non-payment of IGST for the period from July 2017 to March 2022 under reverse charge mechanism and Infosys responded to this notice.

The company said, “According to the pre-show causes notice for this period, the GST amount was Rs 32,403 crore. The company was informed about the closure of pre-show causes notice from DGGI in August last year. The matter has ended with the communication of June 6, with the communication of 6 June.”

In the fourth quarter of the previous financial year, Infosys profit has decreased by about 11.75 percent on a year-on-year basis. The company’s estimate of growth in revenue for the current financial year is also indicating increasing competition in this sector. Infosys has estimated up to three percent growth in revenue. However, the company’s margin guidance is estimated at 20-22 percent. In the fourth quarter of the last financial year, Infosys has acquired a profit of about Rs 7,033 crore. This is a decline of about 11.75 percent compared to the same period of the previous financial year. The company has increased by about 7.92 percent to Rs 40,925 crore on a year-by-year basis in the fourth quarter. The figure was Rs 37,923 crore in the same period of the previous financial year. The company had said that Mitsubishi Heavy Industries (MHI) has invested in the Joint Venture Hipus headed by Infosys. This has increased the company’s presence in Japan.