Infosys share price falls 1% even as IT major disputes Rs 32,000 crore GST evasion notice

Infosys stock fell nearly 1 percent in early trade on 1 August after the IT major received a GST notice citing a massive Rs 32,000 crore tax evasion -- a claim that the company has denied. Infosys shares were trading at Rs 1,850 on the NSE at 9.16 am. The stock extended the previous day's 0.5 percent fall.

Earlier yesterday, Moneycontrol reported that the Directorate General of GST Intelligence has said that Infosys 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.”

Infosys, on its part, said in a stock exchange filing that GST is not applicable on expenses claimed by DGGI, adding that the company has paid all dues and is fully in compliance with the central and state regulations on this matter.

Further, Infosys is also learnt to have clarified that the notice is a pre-show cause notice, and there no demand yet. The company will have to respond to the GST authorities explaining why the demand is not tenable, CNBC TV18 reported citing sources.