GST Network: After soft launch, testing times ahead

To ensure cyber security, GSTN has set up a security operation centre

Even as the goods and services tax completes a month of roll-out, the real test for the GST Network (GSTN), the IT backbone of the new indirect tax regime, is still 30 to 45 days away when the deadline for the first set of return filing approaches.

Delayed by a week from its own estimate, the GSTN opened up the facility for sales invoice upload on July 24, which is the first step in the three-part return filing process. With rules finalised by the GST Council only a fortnight before the rollout, it was a race against time for the GSTN, whose portal is capable of handling as many as 3 billion transactions every month.

Businesses, particularly MSMEs that generate a large number of invoices, should start uploading invoice data to GST portal straightaway and not wait until September when the July return will be due, Navin Kumar, chairman, GSTN, told Business Standard in a recent interview. While not many people attempted uploading invoices, there were reports of initial minor complaints.

“It is difficult at first to find out where one should upload invoices,” according to Archit Gupta, founder & CEO, ClearTax. Further, only JSON files are allowed to be uploaded. So, one has to first convert the excel sheet of invoices to JSON mode, he pointed out. Besides, many find entering all bills online time-consuming. Not surprising that the GSTN call centre currently receives around 10,000 calls a day.”

According to Saloni Roy of Deloitte, a lot of people have been on a wait-and-watch mode. “They are still waiting for the portal to stabilise before attempting to file returns.” The new indirect tax regime allows an exemption from registration up to a Rs 20-lakh annual turnover. But an entity wanting to avail of the input tax credit facility or involved in interstate supply of goods and services will need to register on the portal and come under the ambit of the tax regime.”

The GSTN has devised a timeline for handing over application programming interface (APIs) for GSTR 1, GSTR 2 and GSTR 3—the three parts in the filing process-- to GST Suvidha Providers (GSPs). APIs for GSTR1 were handed over on June 28, while those for GSTR 2 and GSTR 3 will be given in August. The software and portal have been developed by information technology major Infosys.

On complaints that a few taxpayers found themselves diverted to another taxpayer’s account when they logged in, Kumar clarified that it was due to errors from the tax practitioners’ side. “That happens only when there is a tax practitioner who is feeding data for many people. We have issued guidelines that if you are entering data for more than one person on the same browser in the same session, then there is a procedure for that,” he said.

To ensure cyber security, the GSTN has set up a security operation centre, which will run 24x7 and 365 days to keep an eye on traffic. The idea is to raise an alarm whenever there’s any suspicious activity.

The GSTN is a private body that has developed the front-end infrastructure with the help of Infosys. It provides a common platform for registration, filing of returns and e-payments. It has also integrated the common GST portal with the tax administration systems of the Centre and the states.