The central government is likely to accept Infosys’ plea that GST does not apply to services availed from its offshore branch offices, after the Bengaluru office of DGGI issued a pre-show cause notice for ₹32,403.46 crore in IGST. The Karnataka State GST authorities have withdrawn the notice, and the taxpayer’s plea in light of the CBIC circular on import of services by a related person will likely be accepted. The government is actively discussing the Infosys tax matter for an early resolution, as India signals its seriousness about attracting investments.
Source A2ztaxcorp
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