The Karnataka state tax authorities withdrew a pre-show cause notice to Infosys for a INR32.83 billion (USD392 million) GST payment, just a day after it issued the demand.
On 1 August, the authorities directed Infosys to submit a further response to the central authority of the Directorate General of GST Intelligence.
As per the 31 July filing with the BSE, NSE and NYSE, , it had paid all its GST dues and was fully compliant with central and state regulations.
Authorities had issued a pre-show cause notice for GST payment on expenses incurred by the overseas branches of Infosys for the period from July 2017 to March 2022.
However, Infosys said GST was not applicable on these expenses, referring to a circular issued on 26 June by the Central Board of Indirect Taxes and Customs that services provided by overseas branches to the Indian entity were not subject to GST.
