Infosys responds to DGGI’s Rs 415 crore tax notice, read the full clarification letter

Infosys, India’s second-largest IT services provider has issued a clarification letter on show notice served by the Directorate General of GST Intelligence (DGGI). In an exchange filing, the IT giant said that there are no pending Goods and Services Tax (GST) demands against it. Infosys was issued a show cause notice by DGGI questioning their claim of input tax credit (ITC) refunds amounting to Rs 415 crore. A report by Economic Times said that the DGGI’s notice alleged that the services Infosys provided on foreign soil cannot be classified as export of services, and hence does not qualify for ITC refunds.

In the exchange letter, Infosys said that the “company has assessed the merits of the show cause notice and also sought advice from external tax consultants and legal counsels.”