NEW DELHI: The Centre has asked Infosys Ltd. to fix the glitches in GST Network (GSTN) portal within 15 days as they have led to difficulties for taxpayers and have been disrupting efforts to improve compliance.
The government has specifically asked the tech major--the service provider for GSTN--to look into why the tax portal’s capacity has been stuck at 1.2 lakh concurrent sessions, said a person familiar with the development.
Also, Infosys' non-executive chairman Nandan Nilekani has been requested to brief the federal indirect tax body, the GST Council, about GSTN’s performance and challenges, said the person, who spoke on condition of anonymity.
An email sent to Infosys on Monday remained unanswered at the time of publishing. On an earlier query in January, related to GSTN’s performance, Infosys had declined to offer comments.
Infosys, in a communication sent on 5 March, was told that the progress has been “tardy" in resolving challenges faced by taxpayers, said the person quoted above. The tech major has also been informed that despite repeated requests for resolving difficulties, they persist.
The central government has been trying hard to iron out GSTN’s glitches as it is on a drive to improve compliance and eliminate tax evasion by non-intrusive steps for which data collection and processing is vital. Officials resort to enforcement action in suspected cases of tax evasion only when multiple red flags are raised by the technology system.
Last Friday, a meeting chaired by finance secretary Ajay Bhushan Pandey examined if GST rules could be tightened to improve tax compliance and revenue collections. It was also decided to explore if curbs can be imposed on new taxpayers passing on tax credits. At the meeting, it was stressed that ownership for delivery and satisfactory performance of GST portal lay specifically upon Infosys and that it should meet the expectation.
The Centre and state governments collected ₹1.05 trillion in GST revenue in February, a tad lower than the ₹1.1 trillion mopped up in the previous month, according to official data. Collections in February represented an 8.3% year-on-year growth in receipts.