GSTN Names 69 Cos in Sec­ond Short­list of Su­vidha Providers

The Economic Times - - Companies: Pursuit Of Profit - Mugdha.Vari­yar @times­


Ben­galuru: The GST Net­work, the nodal agency in charge of the tech­no­log­i­cal in­fra­struc­ture for the new goods and ser­vices tax regime, has short­listed 69 more com­pa­nies to be­come GST Su­vidha Providers to fa­cil­i­tate more chan­nels to route in­voices un­der the GST to the cen­tral data­base. Th­ese in­clude HDFC Bank, Zoho Cor­po­ra­tion and two of the re­main­ing Big Four con­sult­ing com­pa­nies – PwC and KPMG. The agency had ear­lier short­listed 34 GSPs.

The sec­ond list does not in­clude Flip­kart and sev­eral star­tups such as ClearTax, Le­galRaasta and Moglix, which had ap­plied to be GSPs.

In­fosys with­drew its ap­pli­ca­tion to be a GSP af­ter ap­ply­ing in the sec­ond batch in May. The com­pany probably with­drew due to con­cerns raised over con­flict of in­ter­est, since it is also build­ing the GSTN plat­form, ac­cord­ing to a few GSPs.

In­fosys had bagged the .₹ 1,380-crore con­tract to build the por­tal in 2015. The com­pany said in a state­ment that “it was es­sen­tial to fo­cus our ef­forts on the on­go­ing GST project that we are work­ing on and hence de­cided to with­draw the ap­pli­ca­tion".

The 69 short­listed com­pa­nies will now make pre­sen­ta­tions of their so­lu­tions to the GSTN, which will then make a fi­nal list. In the first batch as well, the GSTN had announced a short­list of 48 com­pa­nies be­fore fi­nal­is­ing 34 GSPs.

In the first phase, it short­listed 34 com­pa­nies in­clud­ing EY, Deloitte, Tata Con­sul­tancy and Re­liance Corporate IT Park to be­come GSPs. A GSP has to de­velop tech­nol­ogy so­lu­tion for tax­pay­ers and other stake­hold­ers to help con­nect to the GST sys­tems for com­pli­ance, start­ing from reg­is­tra­tion of the en­tity to up­load­ing of in­voice de­tails and fil­ing re­turns.

Flip­kart had ap­plied to be a GSP to keep more con­trol over fil­ings to get more sell­ers on board by offering tax so­lu­tions, ET had re­ported in May. How­ever, it was found in­el­i­gi­ble due to fi­nan­cials, as per the GSTN website. The GSTN had re­laxed el­i­gi­bil­ity cri­te­ria the sec­ond time around and low­ered paid-up cap­i­tal and turnover re­quire­ments to en­cour­age star­tups to ap­ply.

Some of the star­tups that did make the cut in­clude Payn­ear and Eko In­dia Fi­nan­cial Ser­vices. As many as 160 com­pa­nies ap­plied to be GSPs in the sec­ond phase. HDFC Bank, which owns a stake in GSTN, will be the first bank to be­come a GSP if it suc­cess­fully com­pletes the fi­nal demo. While the Union and state gov­ern­ments to­gether own 49% eq­uity in the GSTN, which is listed as a not-for-profit, pri­vate com­pany, the rest is held by pri­vate fi­nan­cial in­sti­tu­tions.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.