Why Government blames Infosys for GST network glitches

Friday, November 3 2017

Why Government blames Infosys for GST network glitches www.techgig.com | techgig.com Nov 3, 2017, 02.06 PM IST Top IT Companies Image Credit Continue reading Infosys's management handling the GST information technology backhaul is under the radar from government's highest level. The company bagged the INR 1380 crore deal for both developing and operating GST network in the year 2015. The three top level government officials have reflected strong disappointment with the company owing to consistent glitches which have beset the Goods and Services Tax Network (GSTN), concluding in extension of deadlines for returns a number of times. "It has been a disappointing experience," says one of the officials. He also adds that the IT company should now improve its service delivery. Infosys on the other hand refuted the notion that its work had been regarded as unsatisfactory. "The information you have received is completely inaccurate," the company said. The government on October 30 again delayed filing of GSTR-2 for the period between July to November 30 and GSTR-3 for the period between July to December 11. GSTR-2 for July was previously decided to be filed in August. What has displeased many sections in the government is the exorbitant time taken by the company to come up with solutions for the problems. ''While the long-term problem we face is inculcating a culture of tax compliance, the short-term problem is on account of Infosys," said the official. The top finance ministry officials have been in consistent touch with the company's top executives since the reign of Vishal Sikka in the organisation to help the company find solutions to problems quickly. GSTN's smooth functioning was one of the major issues raised in the meeting of the GST council on September 9 which resulted in the formation of group of ministers(GoM) under Sushil Modi, the finance minister of Bihar. "They (Infosys) should have been more responsive," states an official. The government anticipate things to better with a high-level GoM with a direct surveillance of the IT systems. ''Given the complex nature of the project and rapid change management, there have been several stakeholder concerns that have also been raised," Infosys said in its email. "Some of our finest engineers are supporting the GSTN team as they work towards resolving these and serving all stakeholders,'' says Infosys. "The system has already demonstrated success across several parameters - till date 37 crore invoices have been uploaded on the system while the system is designed to handle 300 to 320 crore invoices every month. Seventy lakh tax payers have successfully migrated to the new system and the country has recorded 25 lakh new registered taxpayers,'' added the company. The central and state-level tax departments have collaborated including all of the 29 states and union territories. The system is also capable of managing 100,000 active users and witnessed peak traffic in the last two days of filing returns for the month of July. "Any large project of this scale, especially a transformative one like this has to deal with changes in both policy and stakeholder usability. Some of these modifications have resulted in rapid changes to the system particularly due to its integration with heterogeneous IT ecosystems including GST Suvidha Providers, Aadhaar, CBEC and Model 1states,'' said Infosys. Rimit