IT giant Infosys found itself in the crosshairs of the Odisha Goods and Services Tax (GST) authority, as it was slapped with a GST penalty amounting to ₹1.46 lakh. The penalty stems from the company’s utilisation of ineligible input tax credit, according to an announcement made by Infosys on Tuesday.
In a disclosure to the exchanges, Infosys revealed that it received the penalty order on 22 April 2024. This directive was issued by the Assistant Commissioner of State, Odisha (GST), mandating the payment of ₹1,46,873 as a penalty.
The penalty pertains to the availing of credit on ineligible Input Tax Credit for the fiscal year 2018-19, as stated in the filing. Despite this setback, Infosys was quick to reassure stakeholders that there would be no significant impact on its financials, operations, or overall activities.
Addressing concerns regarding the delay in filing, Infosys stated that it is currently engaged in evaluating the situation to determine the appropriate course of action moving forward.
This development underscores the importance of adherence to tax regulations and highlights the scrutiny faced by major corporations in ensuring compliance. Experts emphasise the significance of vigilance and accurate tax reporting to avoid such penalties in the future.
The penalty, amounting to ₹1.46 lakh, highlights the rigorous scrutiny faced by companies in adhering to GST regulations and availing input tax credit appropriately. While Infosys reassures stakeholders of minimal impact on its financials, this incident underscores the importance of vigilance and accuracy in tax reporting to avoid penalties and maintain regulatory compliance.
As major corporations navigate the complexities of GST laws, it becomes imperative for them to prioritise robust tax compliance measures and stay abreast of regulatory updates to mitigate risks and ensure smooth operations. Vakilsearch remains committed to providing expert guidance and legal support to businesses in navigating tax regulations and fostering compliance to safeguard their interests.
At Vakilsearch, we offer comprehensive legal services tailored to the needs of businesses, providing expert guidance on tax compliance, regulatory adherence, and risk mitigation strategies. Trust Vakilsearch to navigate the complexities of GST regulations and ensure compliance to safeguard your business interests. Contact us today to learn how we can assist you in addressing your taxation matters with integrity and diligence.
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