The Exchange has sought clarification from Infosys Limited with respect to recent news item captioned DGGI issues Rs 415 crore showcause notice to Infosys over alleged ineligible ITC refunds. The response from the Company is awaited.
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The NSE has asked Infosys to clarify a news report stating that the Directorate General of GST Intelligence (DGGI) has issued a Rs 415 crore showcause notice to the company. The notice relates to alleged ineligible Input Tax Credit (ITC) refunds claimed by Infosys. The company has not yet responded to the exchange's query. A showcause notice is a formal communication asking the company to explain its position before any further action is taken by the tax authorities.
This is a tax-related matter and not confirmed as a liability yet. The stock may see short-term volatility or negative sentiment until Infosys issues its clarification, but a showcause notice is just the first step and does not mean a penalty has been imposed.