Karnataka GST pre-show cause notice withdrawn, will respond to DGGI: Infosys
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New Delhi: Infosys has communicated to stock exchanges on Thursday that Karnataka state GST authority has withdrawn the GST notice it served to the information technology (IT) company the other day, The Indian Express reported.
It is reported that Infosys now has to respond to Directorate General of GST Intelligence (DGGI) regarding slapping of Rs 32,403 crore notice.
“The Company has received a communication from Karnataka State authorities, withdrawing the pre-show cause notice and has directed the Company to submit further response to DGGI central authority on this matter,” the company was quoted stating in a stock filing.
The DGGI served what Infosys said “pre-show cause” notice for services the company availed from its overseas branches over a five-year period beginning 2017.
The Bengaluru-based company, in a stock exchange filing Wednesday said it believes the GST is not applicable on the expenses in contention.
Infosys reportedly said it had received notices from both Karnataka State GST authorities and DGGI.
Alongside, it is reported that the Central Board of Indirect Taxes and Customs (CBIC) earlier in March this year directed its field officers to not issue duplicate notices from both central and state authorities.
“The Principal Commissioner must engage in dialogue with the other investigating office(s) to consider the feasibility of only one of the offices pursuing all these subject matters with respect to the taxpayer, and the other offices consolidating their material with that office,” the outlet quoted instructions as saying.
The DGGI probes matters relating to violation of the Goods & Services Tax, Central Excise Duty and Service Tax.