Infosys relieved from GST Notice by DGGI in ₹32,403 Cr Demand
The matter dates back to July 2024 when DGGI issued a pre-show cause notice to Infosys for the period between July 2017 and March 2022.
Infosys, India’s second-largest IT services company, has received significant relief as the Directorate General of GST Intelligence (DGGI) has officially closed a tax case involving a massive ₹32,403 crore demand. The case pertained to alleged non-payment of Integrated Goods and Services Tax (IGST) under the reverse charge mechanism for services procured from its overseas...
Infosys, India’s second-largest IT services company, has received significant relief as the Directorate General of GST Intelligence (DGGI) has officially closed a tax case involving a massive ₹32,403 crore demand. The case pertained to alleged non-payment of Integrated Goods and Services Tax (IGST) under the reverse charge mechanism for services procured from its overseas branches.
The matter dates back to July 2024 when DGGI issued a pre-show cause notice to Infosys for the period between July 2017 and March 2022. The notice alleged non-compliance with IGST reverse charge provisions and cited a potential liability of ₹32,403 crore. In response, Infosys provided necessary clarifications and documentation. The company has now confirmed through a regulatory filing that the issue has been resolved. “With the receipt of today’s communication from DGGI, this matter stands closed,” the filing stated.
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This development brings closure to a long-standing tax dispute, offering the company regulatory relief. Infosys also revealed that it had already received closure communication for the fiscal year 2017–18 in August 2024. The latest update now covers the remaining years up to FY22, definitively concluding the investigation.
In a parallel development, Infosys CEO Salil Parekh saw a significant increase in his remuneration. According to the company’s latest annual report, Parekh’s total pay rose by 22% in the last fiscal year, reaching ₹80.6 crore, up from ₹66.2 crore the previous year. His compensation package included a base salary of ₹7.45 crore, a bonus of ₹23.1 crore, and stock-linked benefits worth ₹49.5 crore. The increase was largely driven by the exercise of a higher number of restricted stock units (RSUs) in FY25.
With this compensation, Parekh now ranks among the highest-paid executives in India’s IT sector. In comparison, TCS CEO K Krithivasan earned ₹26.5 crore with a 4.6% annual increase, while Wipro CEO Srini Palia received ₹53.6 crore, marking a 10% hike.
This double development—closure of a major tax case and a sharp rise in CEO pay—marks a significant moment for Infosys as it continues navigating complex regulatory and corporate landscapes.
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