Infosys’ ex-CFO, Mohandas Pai, recently told Moneycontrol that the centre’s Rs 32,000 crore Goods and Services Act (GST) demand is ‘tax terrorism’ at its worst.

The Bengaluru GST office has alleged tax evasion of over Rs 32,000 crore by Infosys. 

“Finance ministry should immediately intervene. Such tax terrorism impacts investment into India in a big way,” Pai told Moneycontrol. 

In an official filing, Infosys denied the allegations, stating it has paid all dues and that GST does not apply to the expenses claimed by DGGI.

“Infosys has paid all its GST dues and is fully in compliance with the central and state regulations on this matter,” the company said in the filing.

Pai said that Indian software service companies have been exporting for over 30 years, generating about 95% of export revenues that are exempt from GST value-added tax (VAT). 

Thus, he called the notice a case of tax terrorism.

Pai Questions PM Modi:

“This is no way for the GST department to harass taxpayers. This is not the ease of business promised to business by Prime Minister Modi,” Pai said.

He explained that some officials are disrupting business with unreasonable demands. Pai urged the trade body Nasscom to intervene immediately to prevent further harm to the industry in India. He said such actions significantly impact investment in India.

Social Media Reaction:

Some internet users resonate with Pai’s views, while others criticize him for previously praising the government’s policies.

One user wrote, “Mohan Das Pai aptly termed it as TT.. tax terrorism !! We are aiming for 30 trillion economy. Paradox !!”

Another user commented, “#InfosysMohandas Pai was praising the budget and thanking officials while whole country was complaining about high taxation. Now when his Infosys has got the tax notice, it has become Tax Terrorism. Level sab ke niklenge”

A third user replied, “Bhakt Pai is outraged over Tax Terrorism. But he will still vote Chowkidar because he facilities lynching of minorities.”