Bengaluru, November 18, 2017

Sushil Modi-led GoM meet Infy boss Nandan Nilekani to discuss GSTN glitches

 The GST Network will launch a facility for businesses to make changes to their August and September GSTR-3B return forms from November 20, Bihar Deputy Chief Minister Sushil Modi said on Saturday.

The group of ministers (GoM) formed to look at the information technology (IT) problems of the Goods and Services Tax Network (GSTN) said on Saturday the system was becoming stable, and this was reflected in the gradual reduction in revenue shortfall from states.

“Average revenue shortfall of all the states for August was 28.4 per cent; it has come down to 17.6 per cent in October,” said Modi, who also heads the GoM. The shortfall in August was Rs 12,208 crore; in October, it came to Rs 7,560 crore.

The group also had a review meeting with Infosys and met the IT major’s Chairman Nandan Nilekani. Infosys is implementing the IT network.

The GoM was set up in September, following an outrage over technical glitches in GST implementation. Since then, it has identified a list of glitches and tasked Infosys to set it right on tight timelines. It also asked Infosys to increase its engineering team and set up other teams to coordinate with state tax officials.

“We will see what the trend is in the days to come. Slowly the system is stabilising,” said Modi.

The GoM, however, said challenges in the technology platform still exist: One of the major issues has been non-availability of editing facility for the traders for three months.  

Nilekani had led the committee that drafted the architecture for GSTN. Infosys claimed to have resolved many of issues.

At least 200,000 traders encountered difficulties in August, September, and October since there was no editing facility in summary return filing (3B). Infosys has been asked to make it available by November 21.

“There is a major issue regarding editing facility of 3B returns. It was there in July, But for August, September and October the facility was not provided and because of that more than 200,000 taxpayers were not able to file returns,” said Modi.

The Bengaluru-headquartered software services company received a Rs 1,380-crore contract to implement the GST Network and maintain its technology infrastructure for five years.

The GoM had set a deadline for Infosys during its first review meeting to resolve the technical glitches on GSTN by October-end and later said the company has been “able to meet deadline for majority of the technical glitches”. GSTN had scaled to accommodate 130,000 returns in an hour.

The Union government asked Infosys to deploy more experts, both for the GSTN and in state headquarters, to improve the return-filing process.

“In the last 30 days, Infosys has added 100 more engineers to this project. As of today, 621 engineers are looking into the GSTN. We had asked Infosys to deploy a resident engineer in every state and Union territory so that they can coordinate with the state tax officers. They said they have deployed 30 such engineers. Six more will be deployed in 15-20 days,” said Modi.

[The Business Standard]