Top IT industry association Nasscom on Thursday strongly opposed a ₹32,403-crore goods and services tax (GST) notice slapped on Infosys, flagging it as a broader issue affecting multiple companies in the sector.

The notice, issued by Karnataka state authorities, alleges that Infosys owes tax on services received from its overseas branches.

The IT giant has disputed the claim.

Nasscom said the demand reflects a “lack of understanding of the industry’s operating model” and accused tax authorities of ignoring government circulars aimed at clarifying the issue.

“This is an industry-wide issue, and multiple companies are facing avoidable litigation, uncertainty, and concerns from investors and customers,” Nasscom said in a statement.

The industry body argued that there was no “import of service” by the Indian head office from its foreign branches, and hence no GST liability. It pointed to court rulings and a recent government circular supporting its stance.

“These demands should stand addressed by the above-mentioned circular, independent of the basic tax position of there being no supply in the first place,” Nasscom said.

The IT body urged the government to ensure proper implementation of the circular to avoid future disputes.

“Accelerating services exports is key to India’s ambition of becoming a developed nation and attracting global tech investment,” Nasscom said, adding that a supportive policy environment was crucial.