Infosys Limited has issued an official clarification following media reports about a show cause notice of Rs 415 crore issued by the Directorate General of GST Intelligence (DGGI) over alleged ineligible input tax credit (ITC) refunds.
In a statement dated October 9, 2025, the IT major confirmed that it has filed a Writ Petition in the Karnataka High Court on September 19, 2025, challenging the legitimacy of the DGGI’s notice. The company emphasized that there is no tax demand as of date against it.
According to Infosys, the DGGI had sought information in May 2025 regarding GST refunds, and the company had cooperated by submitting all relevant documents and participating in meetings with the officials. However, despite seeking additional time to respond to a pre-show cause notice issued on July 30, 2025, the DGGI proceeded to issue a show cause notice on August 12, 2025, demanding Rs 414.88 crore (excluding interest and penalties).
The DGGI alleged that services provided by Infosys’s overseas branches do not qualify as export of services, making the claimed refund “erroneous.” Infosys said it has taken external legal and tax counsel and believes it has a strong case.
The company reaffirmed that it has always been fully compliant with all central and state laws, including GST refund regulations, and that the current development has no material impact on its operations.
Disclaimer:
The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.