Nasscom defends IT firms as more GST notices loom

The goods and services tax (GST) authorities may send tax notices to more information technology (IT) companies, citing non-payment of taxes on services received by them from their overseas branches, sources privy to the matter said.

This follows Infosys receiving a whopping Rs 32,400-crore notice from the Directorate General of GST Intelligence (DGGI) for such receipts, thanks to the taxman’s interpretation that since the company and the branches are “distinct persons”, the transactions between them are taxable.