Infosys Receives Rs 82.75 Crore Penalty from CGST for Alleged ITC Violations
Infosys has received a penalty order worth Rs 82.75 crores from the Joint Commissioner of CGST for alleged Input Tax Credit violations during FY 2018-19 to 2022-23. The violations include disallowance of blocked ITC, excess ITC claims, wrong head classifications, and invoices not reflected in Form 2A. This adds to the company's existing regulatory challenges including a Rs 4.15 billion show-cause notice from DGGI and a previous Rs 113.59 million penalty. The company states there is no material impact on its financials or operations.

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Infosys , one of India's leading IT services companies, is currently facing multiple regulatory challenges from tax authorities. The company has now received an additional penalty order from the Joint Commissioner of CGST, adding to its existing compliance issues with government authorities.
Latest CGST Penalty Order
Infosys has received a penalty communication from the Joint Commissioner of CGST on December 16, 2025. The penalty order details several alleged violations related to Input Tax Credit (ITC) practices spanning multiple financial years.
| Parameter: | Details |
|---|---|
| Penalty Amount: | Rs 82.75 crores |
| Issuing Authority: | Joint Commissioner of CGST |
| Date of Receipt: | December 16, 2025 |
| Period Covered: | FY 2018-19 to FY 2022-23 |
Nature of Alleged Violations
The penalty order cites multiple categories of alleged ITC-related contraventions during the specified period. The violations include disallowance of blocked ITC, excess ITC claims, wrong classification under tax heads, and invoices not reflected in Form 2A.
| Violation Type: | Description |
|---|---|
| Blocked ITC: | Alleged disallowance of blocked Input Tax Credit |
| Excess ITC: | Claims exceeding permissible limits |
| Wrong Head: | Incorrect classification under tax categories |
| Form 2A Issues: | Invoices not properly reflected in statutory forms |
Previous Regulatory Actions
This latest penalty adds to Infosys's existing regulatory challenges. The company had previously received a show-cause notice amounting to Rs 4.15 billion from the Directorate General of GST Intelligence (DGGI) for suspected ineligible ITC refund claims. Additionally, the company faced a separate penalty of Rs 113.59 million from the Assistant Commissioner of Central Tax for alleged non-realization of export proceeds.
Company's Position
Infosys has stated in its regulatory filing that the latest penalty order does not have any material impact on the company's financials, operations, or other activities. The company has disclosed this information under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Regulatory Compliance Landscape
These multiple penalty orders highlight the increasing scrutiny on tax compliance practices in the Indian IT sector. The penalties span across different aspects of GST compliance, from ITC claims to export-related obligations, indicating comprehensive regulatory oversight of the company's tax practices.
Historical Stock Returns for Infosys
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.66% | +1.07% | +1.41% | -0.10% | -15.42% | +27.84% |
















































