Infosys disputes DGGI’s Rs 415 crore GST claim, says fully compliant
Infosys had also filed a writ petition before the Karnataka High Court on September 19, 2025, challenging the legitimacy of DGGI's show cause notice.
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Infosys on Thursday issued a clarification regarding a show cause notice issued by the Directorate General of GST Intelligence (DGGI) amounting to Rs 415 crore over alleged ineligible input tax credit (ITC) refunds.
According to the IT services company, the DGGI had in May 2025 sought details on GST refunds claimed by Infosys. The company provided the required information and held multiple meetings with DGGI officials on the matter.
Subsequently, the authority issued a pre-show cause notice on July 30, 2025, for which Infosys requested additional documents and an extension to respond. However, the company said that the DGGI did not grant additional time and instead issued a show cause notice on August 12, 2025, amounting to Rs 414.88 crore (excluding interest and penalties).
As per the DGGI’s notice, services provided by the company’s overseas branches are not considered export of services, and hence, the refund claimed by Infosys is allegedly ineligible.
Infosys stated that it had evaluated the merits of the notice and sought opinions from external tax and legal experts. Acting on this advice, the company filed a writ petition before the Karnataka High Court on September 19, 2025, challenging the legitimacy of the show cause notice.
“There is no tax demand as on date against the company regarding this matter. The company reiterates that it has always been fully compliant with all central and state laws related to GST refunds. There is no material impact of this matter on the company,” Infosys said in its BSE filing.
