Infosys has gained temporary relief from a massive ₹32,400-crore GST demand after Karnataka authorities withdrew a preliminary notice. However, the IT giant now faces scrutiny from the central Directorate General of GST Intelligence (DGGI). The notice, related to services from overseas branches between 2017 and 2022, claimed Infosys owed IGST under the reverse charge mechanism. Infosys argues that GST is not applicable to these expenses, citing a recent circular from the Central Board of Indirect Taxes and Customs. The initial demand had raised industry concerns about its impact on investor sentiment and the technology sector.