Karnataka authorities have withdrawn GST notice: Infosys
New Delhi, Aug 1: A day after it received Rs 32,403 crore GST demand, Infosys on Thursday said Karnataka state authorities have withdrawn the 'pre-show cause' notice to the company and directed it to submit further response to the Directorate General of GST Intelligence (DGGI) on the issue.
India's second largest IT company had made headlines on Wednesday after GST authorities slapped a Rs 32,403 crore notice on it for services availed by the company from its overseas branches for five years starting 2017.
The company had described the notice a 'pre-show cause' notice and categorically maintained that it believes that GST is not applicable on expenses mentioned.
ALSO READ: Karnataka govt. launches new cyber security policy
In a late evening filing on Thursday, Infosys informed: "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 Bengaluru-headquartered firm on Wednesday disclosed that Karnataka State GST authorities had issued a pre-show cause notice for payment of GST of Rs 32,403 crore for the period July 2017 to March 2022 towards the expenses incurred by overseas branch offices of Infosys Limited, and added that the company has responded to the notice.
"...the Company has also received a pre-show cause notice from Director General of GST Intelligence on the same matter and the Company is in the process of responding to the same," Infosys had said in the statutory filing on Wednesday.
The company believes that as per regulations, GST is not applicable on such expenses.
"Additionally, as per a recent Circular...issued by the Central Board of Indirect Taxes and Customs on the recommendations of the GST Council, services provided by the overseas branches to Indian entity are not subject to GST," Infosys had said.
Infosys had strongly argued that GST payments are eligible for credit or refund against export of IT services.
"Infosys has paid all its GST dues and is fully in compliance with the central and state regulations on this matter," the company had contended.
As per reports, the document sent to Infosys by GST authorities says: "In lieu of receipt of supplies from overseas branch offices, the Company has paid consideration to the branch offices in the form of overseas branch expense. Hence, M/s Infosys Ltd, Bengaluru is liable to pay IGST under reverse charge mechanism on supplies received from branches located outside India to the tune of Rs 32,403.46 crores for the period 2017-18 (July 2017 onwards) to 2021-22."
The demand -- a staggering Rs 32,403 crore -- is more than a year's profit for Infosys. For quarter just ended, Infosys' net profit rose 7.1 per cent year-on-year to Rs 6,368 crore, and revenue from operations stood at Rs 39,315 crore, an increase of 3.6 per cent from a year ago.
On Thursday, apex IT body Nasscom said the latest tax demand reflects a lack of understanding of the industry's operating model and sheds light on sector-wide issues wherein multiple companies are facing avoidable litigation and uncertainty.
In a detailed statement issued a day after Infosys' BSE filing on GST 'pre-show cause' notice, Nasscom asserted that government circulars issued based on recommendations of the GST Council must be honoured in enforcement mechanisms so that notices do not create uncertainty and negatively impact perceptions on India's ease of doing business.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Kangana Ranaut sparks row: Claims Gandhi made 'Raghupati Raghav Raja Ram' the national anthem
New Delhi: A significant political controversy has erupted following the Modi government's decision to rename the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), a move that has drawn sharp criticism from opposition parties. The row was further fueled by BJP MP Kangana Ranaut, who, while defending the name change, erroneously claimed that Mahatma Gandhi had made the devotional song "Raghupati Raghav Raja Ram" India’s national anthem.
The central government has rebranded the flagship rural employment scheme from MGNREGA to the "Viksit Bharat-Guarantee for Employment and Livelihood Mission," abbreviated as VB-G RAM G. The removal of Mahatma Gandhi's name from the scheme has been termed an insult to the Father of the Nation by the Congress and other opposition parties.
When questioned by the media outside Parliament regarding the opposition's allegations, Mandi MP Kangana Ranaut defended the government's decision by invoking Mahatma Gandhi's devotion to Lord Ram.
"How is naming it 'Ram Ji' an insult to Gandhi ji?" Ranaut asked. "Mahatma Gandhi made 'Raghupati Raghav Raja Ram' the national anthem to organize the entire country. Therefore, this is an insult to Mahatma Gandhi? The government is fulfilling his dream by giving it the name of Ram."
Ranaut's claim regarding the national anthem was immediately seized upon by the opposition. Congress leader Supriya Shrinate shared the video of Ranaut’s statement on social media, tweeting sarcastically, "Come on brother, today we learned a new national anthem! The BJP is full of such gems."
Social media users also trolled the MP for the factual error. One user quipped, "Kangana ji forgot to mention that Bapu made this the national anthem after the country got independence in 2014," while another commented that the party finds people who "don't use their brains while forwarding WhatsApp messages."
Beyond the social media mockery, senior Congress leaders criticised the renaming on ideological grounds. Former Rajasthan Chief Minister Ashok Gehlot took to X (formerly Twitter) to condemn the move.
"The biggest irony is that Mahatma Gandhi was a lifelong devotee of Lord Ram and said 'Hey Ram' in his last moments," Gehlot wrote. "Today, the central government is making a despicable attempt to sideline Gandhi ji under the guise of the same 'Ram' name (VB-G RAM G), which is highly condemnable."
मनरेगा का नाम बदलने की केंद्र सरकार की कवायद महात्मा गांधी के प्रति उनकी ओछी मानसिकता और असम्मान का प्रमाण है। सरकार पहले 'पूज्य बापू' के नाम का शिगूफा छोड़ती है और फजीहत होने पर अब 'विकसित भारत-गारंटी फॉर रोजगार एंड आजीविका मिशन (VB-G RAM G)' जैसा नाम थोपना चाहती है। बार-बार नाम…
— Ashok Gehlot (@ashokgehlot51) December 15, 2025
गांधी जी ने ‘रघुपति राघव राजा राम’ को लेकर नेशनल एंथम बनाया था
— Supriya Shrinate (@SupriyaShrinate) December 16, 2025
BJP MP कंगना रनौत
चलो भाई आज नया नेशनल एंथम भी पता चला है!
BJP में एक से एक शिरोमणि भरे पड़े हैं 😂🤣 pic.twitter.com/9DvyV5xLb1
