The Infosys Irony

India has been undergoing a significant number of regulatory changes over the last decade. Decades-old corporate laws are being rewritten. While this would appear to be a challenge for companies, looking closer reveals that these changes are made to make their lives easier, especially for startups. However, sometimes, companies, even those from the elite list, end up in trouble, leading to legal battles. One such case that caught eyeballs recently stemmed from Karnataka.

The Karnataka state Goods and Services Tax (GST) authorities, which is a reference to the zonal body of

the DGGI, sent a pre-show cause notice to Bangalore-based MNC Infosys for alleged evasion of ₹32,403 crore in integrated GST (IGST) for the supply of services by its foreign branches from July 2017 to March 2022.

Ironically, Infosys manages the Goods and Services Tax Network (GSTN) portal of the government of India. In 2015, Infosys bagged ₹1,380 crore contract to build the technology platform for the union government’s iconic tax system. However, that company has responded to the allegations, saying that it has paid all its GST dues and fully complies with the central and state regulations on this matter. A legal battle is likely to follow.

If this can happen to Infosys, be sure it can happen to any company. No wonder the role of the Chief Legal Officer (CLO) has become increasingly important and complex, undergoing significant transformation in recent years, particularly in Asia. Organizations worldwide now require CLOs to manage the intellectual property and compliance departments with the same rigor as operational units, thereby directly contributing to organizational growth. In this issue, we highlight exemplary CLOs who lead by example. We welcome your thoughts.