Nasscom backs Infosys; says Rs 32,000-crore GST notice shows lack of understanding of industry model

A day after Infosys acknowledged the receipt of a notice for alleged evasion of over Rs 32,000 crore ($3.8 billion) in integrated goods and services tax (IGST), industry body, nasscom said that the recent episode reflects GST enforcement mechanism’s lack of understanding of IT industry operating model. It added that it is not a case of ‘import of service’ by the head office from the branch, as made out to be.

Nasscom in a statement said, “Recent media reports of a GST demand of over Rs 320 billion reflects a lack of understanding of industry’s operating model. This is an industry wide issue, and multiple companies are facing avoidable litigation, uncertainty, concerns from investors and customers.”