Shares of Infosys Ltd. fell on Thursday after it came under the radar of the Directorate General of GST Intelligence for an alleged evasion of Rs 32,403 crore.
The filing said that the Karnataka State GST authorities have issued pre-show cause on Wednesday for the period from July 2017 to March 2022 towards the expenses incurred by overseas branch offices of Infosys, according to an exchange filing.
The IT services provider said the goods and services tax was not applicable to its overseas branch services, as per latest regulations. Infosys added that it had paid all its GST dues and was fully in compliance with central and state regulations.
Infosys stock fell as much as 1.24% in early trade to Rs 1,845.10 apiece on the NSE. It was trading 0.21% lower at Rs 1,864.35 per share, compared to a 0.42% advance in the benchmark Nifty at 9:37 a.m.
The share price has risen 36.24% in the last 12 months and 21.54% on a year-to-date basis. The total traded volume so far in the day stood at 1.8 times its 30-day average. The relative strength index was at 79.47, implying that the stock is overbought.
Twenty-eight out of the 46 analysts tracking Infosys have a 'buy' rating on the stock, 13 recommend 'hold' and five suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 1.2%.
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