Infosys Faces ₹13.6 cr GST Penalty

Infosys on Monday said it received a penalty order of ₹13.60 crore from the Office of the Joint Commissioner of Central Goods and Services Tax (CGST). 

In a disclosure to SEBI, the company provided a copy of the order alleging that it had not paid GST on the stay of employees. The claimed violations cover the period from FY19 to FY23.

Infosys informed that the penalty will not have any material impact on its financials, operations, or other activities. Further, they noted that the delay in disclosure was due to the time required to verify the order details and determine the appropriate course of action.

This penalty comes against the backdrop of the GST and tax-related probe that the company has faced over the past two years. 

In July 2024, the Directorate General of GST Intelligence (DGGI), following a reference from the Karnataka GST Authority, issued a pre–show-cause notice for alleged tax evasion worth ₹32,403 crore. It pertained to non-payment of IGST under the reverse-charge mechanism on services attributed to the company’s overseas branch offices between July 2017 and March 2022.

Subsequently, in August 2024, the Karnataka authority withdrew its notice and transferred the matter to DGGI for central adjudication. The case was eventually closed by DGGI on June 6, 2025, covering the period from FY19 to FY22. 

Infosys also reported receiving a show-cause notice regarding alleged ineligible input tax credit refunds amounting to about ₹415 crore in 2025. 

The company challenged this notice in the Karnataka High Court, maintaining that no GST demand was due in this matter.
Meanwhile, in a separate development, its Singapore entity was fined SGD 97,035.90 by the Inland Revenue Authority of Singapore earlier this year due to delays in GST payments, a penalty that Infosys described as immaterial.