Infosys has addressed media reports concerning a show cause notice from the Directorate General of GST Intelligence (DGGI) regarding alleged ineligible ITC refunds of Rs 415 crore. Infosys clarifies that they have been cooperating with the DGGI, providing relevant information and engaging in discussions. While a show cause notice was issued on August 12, 2025, the company has challenged its legitimacy by filing a Writ Petition in the Karnataka High Court. Infosys maintains compliance with all laws.
Response to GST Notice
Infosys has issued a statement addressing recent media reports concerning a show cause notice from the Directorate General of GST Intelligence (DGGI). The notice alleges ineligible ITC refunds amounting to Rs 415 crore. Infosys aims to clarify its position on this matter.
Cooperation and Information Provided
Infosys states that in May 2025, the DGGI requested information regarding GST refunds claimed by the company. Infosys confirms that it provided the necessary information and held meetings with DGGI officials to address their queries.
Show Cause Notice and Legal Action
While Infosys sought additional time to respond to a pre-show cause notice issued on July 30, 2025, the DGGI instead issued a show cause notice on August 12, 2025, for Rs 414.88 Crores, excluding interest and penalties. The company has assessed the merits of the notice and, following external tax consultations, filed a Writ Petition in the Hon’ble High Court of Karnataka on September 19, 2025, challenging its legitimacy.
Nature of the Dispute
The show cause notice alleges that services provided by Infosys’ overseas branches are not exports, thus rendering the refund claim erroneous. Infosys disagrees with this assessment. The company reiterated that there is no tax demand as of October 9, 2025, the date of this statement.
Commitment to Compliance
Infosys emphasizes its commitment to full compliance with all central and state laws and regulations regarding GST refunds.
Source: BSE
