Taxing times for Infosys as GST mismatch triggers Rs 40.7 lakh penalty

MUMBAI: When numbers refuse to tally, even the cleanest balance sheets face a reality check. Infosys Limited has received a communication from the Deputy Commissioner of Commercial Taxes seeking collection of a penalty amounting to Rs 40,72,525, following an alleged mismatch in GST filings.

According to the disclosure made under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, the demand was received on January 1, 2026, at 10:30 IST. The penalty relates to the financial year 2018–19 and stems from discrepancies between credit notes declared in GSTR-1 and those reported in GSTR-9, leading to an alleged under-declaration of turnover.

The notice follows an order passed by the tax authority after identifying inconsistencies during the reconciliation of returns. While the issue traces back several years, it has resurfaced as part of the tax department’s review and compliance enforcement process.

Infosys, however, played down the financial significance of the demand, stating that the penalty will not have any material impact on its financial position, operations, or business activities. The company clarified that the matter is limited in scope and does not affect its ongoing performance or outlook.

The development underscores how legacy compliance issues continue to surface even for India’s largest corporates, particularly as tax authorities intensify scrutiny of historical GST filings and reconciliation gaps.

For Infosys, the episode appears to be more about paperwork than pain, a reminder that in the world of taxes, even small mismatches can come back with a bill.