GSTN Moves Forward to Shortlist 88 Service Providers to Interface with Network

GSTN, based in Aerocity near the IGI Airport as centralised hub to handle to the GST transactions has shortlisted 88 Service Providers including the Public Sector Giant ISDL to provide the interface to the 65 lakh plus Users of the GST. The final selection of the SPs will be based on verification of the infrastructure with the agencies.

The SPs will work the Application Developers who will develop software based solutions according to the needs of the users.

The dashing CEO of GSTN Navin Kumar (former Civil Service Officer of IAS 1975) told a packed hall of SP applicants at the NDMC Convention Hall on 25 Oct that the initial short list is confined to the biggies among the aspirants. With time, the system will evolve to give recognition others in the applicant list.

All the 300 plus among the applicants are registered and will be considered for recognition in further rounds, he added.

(The small service provider operating in specific geographies as well as the 200 plus accounting software companies are not too happy with the monopolization of GST by the Big SPs. They want the system be open to all on the pattern of the stock exchanges and broker linkages).

Kumar and his team of five seniors explained the complexities and basis of the GST system in both regulatory and technical environments to the eager audience.

The challenge before GSTN is huge. The Plus 65 lakh users will generate billions of invoices which will come in thru the GSTR1 abd GSTR 1A returns. The corresponding purchase registers will be GSTR2 and GSTR 2A. With the total returns numbering to 61 per year, the volumes in the system will be humongous. Infosys has set up the hardware and software to handle the info flows.

Some 55 of the best talent drawn from Government and private sector is with GSTN. The legal and regulatory frame is complex with 31 State tax jurisdictions, a meddlesome Central Government and indecisive GST Council with consensus based decision making. The number of Laws and Rules and amendments will generate yet another complexity.

Can they do it? That is a difficult question to answer. The GST is a win-win for the revenue hungry Governments and Control freak administrators. The industry is happy to be rid of archaic taxation laws with multiple taxation of same transaction and item without relief of input credit. This “hunger in the belly” may well be the engine to complete the GST Act, with or without tears. The passage of the Constitution Amendment Bill is a good omen of what lies in the future.