New Delhi: IT bellwether Infosys has said that Karnataka state authorities have withdrawn GST notice against the company, a day after it received Rs 32,403 crore GST demand. Infosys said that the state authorities have directed the company to submit further response to the Directorate General of GST Intelligence (DGGI) on the issue.

Impact Of GST Withdrawal On Infosys Stocks

Narinder Wadhwa, Managing Director & CEO of SKI Capital said that this withdrawal could have positive implications for Infosys’s stock price, as it removes a legal and financial uncertainty hanging over the company. 

“Investors often react favorably when such uncertainties are resolved, particularly in high-profile cases involving major companies like Infosys. However, the long-term impact on the stock will depend on the resolution of any subsequent actions by the authorities and overall market conditions,” he added.

Wadhwa lamented that the GST department should be careful when issuing such notices against large, reputable companies, especially those like Infosys whose major business is international. 

“Allegations and reputational damage can significantly affect these companies’ business operations and market standing. For companies with substantial global business, such reputational losses can lead to a loss of client trust and potentially impact international partnerships and revenue streams. Therefore, thorough investigations and clear evidence are crucial before proceeding with cases against companies with significant international exposure to maintain market stability and investor confidence,” he added.