The Indian government is likely to withdraw its $4 billion tax demand from Infosys following significant backlash and lobbying by the IT company.
Last month, authorities had demanded the sum, claiming Infosys owed GST from its overseas offices dating back to 2017. The tax investigation unit followed the current regulations when issuing the notice. However, the federal finance ministry now considers this demand contrary to India's tax principles, which generally exclude taxes on services exports. The decision reflects broader criticism and pressure from the software services sector.