DGGI Ends Infosys Tax Dispute for FY 2017-2018
The DGGI has closed the Infosys tax issue for FY 2017-2018, settling the Rs 32,000 crore dispute after clarifications from the finance ministry.
DGGI has settled tax dispute with Infosys.
The Directorate General of GST Intelligence (DGGI) has successfully concluded the Rs 32,000 crore tax dispute with Infosys by terminating the pre-show cause notice procedures for the 2017-2018 financial year.
This action aims to settle the controversy caused by earlier misunderstandings in GST interpretation.
The finance ministry’s prompt intervention helped address business concerns and maintain confidence, with Infosys confirming in a stock exchange filing that the DGGI has concluded the pre-show cause notice for FY 2017-2018, which involved a GST claim of Rs 3,898 crore.
The company also reported responding to a pre-show cause notice covering July 2017 to March 2022.
Tax experts and consultants have criticised DGGI’s approach as an "over-interpretation" of the law.
They cite a June 26 circular from the Central Board of Indirect Taxes and Customs that clarifies transaction handling between branches.
Nasscom supported Infosys by referencing this circular, while experts noted that Infosys’s branch fund transfers did not involve invoicing, disputing DGGI’s claims.
