Big Relief for Infosys: ₹32,403 Crore GST Case Closed!

Here’s what happened: The Case: The government’s GST Intelligence team (DGGI) had sent a warning to Infosys. They said Infosys hadn’t paid enough IGST (Integrated GST) under something called the Reverse Charge Mechanism (RCM) for the period July 2017 to March 2022. Reverse Charge Mechanism? Normally, the seller pays GST. But under RCM, the buyer (like Infosys) has to pay GST directly to the government for certain types of purchases (often from foreign vendors or unregistered suppliers). The Allegation: In total, the authorities said Infosys owed ₹32,403 crore in unpaid tax. This wasn’t a final demand, just a pre-show cause notice — like a warning letter. What Infosys Did: Infosys replied to all notices and gave their side of the story clearly and on time. The Outcome: • In Aug 2024, DGGI closed the case for FY 2017–18. • And now, on June 6, 2025, the authorities closed the case for the rest of the years (FY19 to FY22). • This means no more investigation and no penalty or demand as of now. Why It Matters: • Big companies like Infosys can face huge tax claims — but if they respond properly, they can defend themselves. • It also shows the importance of good compliance and record-keeping. • Investors feel more confident when such large cases are resolved. In short: Infosys was under scanner for ₹32,403 Cr unpaid GST under RCM. They responded properly. Now, case closed.