Government Blames Infosys for GST Network Glitches, Infosys Rebuts

Infosys in an email to ET completely refuted the allegations.

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Infosys finds its management of the GST information technology backbone under scrutiny at the highest level of the government, reported the Economic Times.

Infosys had won the Rs 1,380 crore deal for developing and running the backend of GST in 2015 said the report. However, three top government officials express their dissatisfaction with the company over frequent glitches in the Goods and Services Tax Network (GSTN), which have lead to extended deadlines for returns on multiple occasions.

One of the officials also told ET that the software provider is now expected to improve service delivery.

However, Infosys, in an email to ET, completely refuted the allegations.

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The time taken for the company to respond and to come up with solutions has irked some sections of the government.

While the long-term problem we face is inculcating a culture of tax compliance, the short-term problem is on account of Infosys.

An official to <i>ET</i>

GSTN’s functioning was one of the key issues flagged at a meeting of the GST Council in Hyderabad on 9 September, leading to the formation of a group of ministers (GoM) under Bihar finance minister Sushil K Modi.

The Government expects improvement and Modi has called a meeting to seek suggestions from stakeholders on how to improve GSTN functioning on 1 November in Patna.

Infosys Refutes Allegations, Defends Itself

Denying the charges, however, the Infosys said in an email to ET:

The information you have received is completely inaccurate

Infosys has also said it has been working hard to resolve glitches quickly, reported ET.

“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 to ET. “Some of our finest engineers are supporting the GSTN team as they work towards resolving these and serving all stakeholders.”

Infosys also said in its defence that any large project of this scale has to cope 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 1 states.

Infosys to <i>ET</i>

(With inputs from Economic Times)