Business Standard

Ministeria­l panel on GSTN to meet on Saturday

Aims to fix operationa­l and technical issues of GST IT infra

- DILASHA SETH

With a slew of reported glitches in the goods and services tax network (GSTN), the ministeria­l panel will meet on Saturday in Bengaluru to examine the informatio­n technology challenges plaguing the uniform tax regime. The committee, chaired by Sushil Kumar Modi, was constitute­d earlier this week.

Informatio­n technology (IT) major Infosys that has built the goods and services tax network (GSTN) portal is expected to face a volley of questions from the ministeria­l panel on Saturday in Bengaluru over the IT challenges plaguing the uniform tax regime.

The committee, chaired by Sushil Kumar Modi, deputy chief minister and finance minister of Bihar, was constitute­d earlier this week after a slew of glitches were reported in filing returns. It was a sequel to the GST Council’s decision last week at Hyderabad, to oversee technical and operationa­l issues pertaining to the IT infrastruc­ture. Infosys is expected to face a barrage of questions from ministers on the problems faced by businesses for registrati­on and filing of returns.

GSTN will give a presentati­on to the ministers of the work done, challenges and the strategy. The meeting will be attended by its officials and those of IT major Infosys.

“We will try to understand the IT infra issue from a 360-degree perspectiv­e. We will review the issues faced by traders and the challenges confrontin­g GSTN. A strategy will be charted after the meeting,” said a state finance minister, part of the five-member panel. New GSTN chairman A B Pandey will attend, as will its chief executive, Prakash Kumar.

The committee was constitute­d in the wake of complaints from businesses about the glitches in GSTN. Simultaneo­usly, the timeline for filing of returns was extended. The system had crashed last Friday, September 8, two days before the earlier deadline to file detailed sales returns, after a flood of entities tried uploading of invoices. Close to 750,000 returns were filed on Saturday, just before the due date was extended to October 10.

GSTN awarded a contract worth ~1,320 crore to Infosys to build and maintain the technology network crucial for implementi­ng the proposed GST system across the country for five years.

The GSTN is a non-government, private limited company incorporat­ed on March 28, 2013, with a government shareholdi­ng of 49 per cent and private shareholdi­ng of 51 per cent.

Officials in the government argue that businesses deferring return filing till the last day are also a factor for the panic. “After the announceme­nt of deadline extension, hardly anyone is filing their returns. People have stopped coming now. This mentality needs to change,” said one.

Acknowledg­ing the issue with the system, a finance ministry official said, “Once you start a large system, there will be issues. Forms were finalised in the last week and then there were modificati­ons. Keeping that in mind, GSTN is a stable system but, unfortunat­ely, the system didn’t work on September 8.”

The officials say too many forms, such as GSTR 3B, were introduced at the last minute. “GSTN is trying to do so many things at the same time. Officials are working till four in the morning in trying to fix issues,” said one.

About 2.8 million GSTR-1 or detailed sales returns were filed by Saturday, the earlier deadline. This is about half the expected returns for the month of July. However, traffic on the GSTN portal on Saturday declined significan­tly from 80,000 users an hour to 17,000 an hour after finance minister Arun Jaitley announced the extension.

The deadline for filing of purchase returns or GSTR-2 and GSTR-3, the matching ones of GSTR-1 and GSTR-2 for July, have also been extended to October 31 and November 10, from September 25 and September 30, respective­ly. Jaitley had said the decision was taken after the portal got overloaded more than once.

 ??  ?? Infosys is expected to face a volley of questions from ministers on the problems faced by businesses for registrati­on and filing of returns
Infosys is expected to face a volley of questions from ministers on the problems faced by businesses for registrati­on and filing of returns

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