Infosys Limited has received a penalty notice from tax authorities amounting to ₹40,72,525, which the company disclosed to stock exchanges on January 02, 2026. The penalty communication was issued by the Deputy Commissioner of Commercial Taxes and relates to alleged GST compliance violations from the financial year 2018-19.

Penalty Details and Timeline

The company received the official communication on January 01, 2026, at 10:30 IST. The penalty stems from alleged discrepancies in the company's GST return filings, specifically related to mismatches in credit notes declared between different GST return forms.

Nature of Alleged Violation

The penalty order relates to a demand issued for alleged under-declaration of turnover. The specific violation concerns mismatches in credit notes declared in GSTR-1 versus GSTR-9 returns for the financial year 2018-19. This type of discrepancy typically occurs when there are differences between monthly/quarterly GST returns (GSTR-1) and the annual GST return (GSTR-9).

Regulatory Compliance

Infosys has disclosed this penalty communication in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has informed all relevant stock exchanges including BSE Limited, National Stock Exchange of India Limited, and New York Stock Exchange about this development. The information has also been made available on the company's official website at www.infosys.com for public access and transparency.

Infosys Limited has received penalty orders totaling ₹7.49 crores from commercial tax authorities, as disclosed in a regulatory filing on December 30, 2025. The IT services major received the communication from the Deputy Commissioner of Commercial Taxes on December 29, 2025, at 16:24 IST.

Penalty Details and Violations

The penalty orders relate to alleged violations during the financial year 2021-22. The commercial tax authorities have issued demands for multiple compliance issues that resulted in the substantial penalty amount.

Nature of Alleged Violations

The penalty orders cover several areas of alleged non-compliance during FY 2021-22. The violations span across various aspects of tax compliance and business operations.

The key areas of alleged violations include:

• Non-realization or delay in realization of export proceeds
• Availment of ineligible Input Tax Credit (ITC)
• Issues related to Reverse Charge Mechanism (RCM)
• Import of services compliance matters
• Sale of investments related issues
• Staff welfare expense matters
• Write-off cases of exports

Regulatory Compliance

The company has made this disclosure in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was signed by A.G.S. Manikantha, Company Secretary, with membership number A21918.

Infosys has communicated this information to all major stock exchanges including BSE Limited, National Stock Exchange of India Limited, and New York Stock Exchange. The company has also indicated that this information will be hosted on its official website at www.infosys.com for public access and transparency.