GST Network likely to face heavy rush next week

The government is expecting heavy rush on the Goods and Services Tax Network (GSTN), as lot of dealers are set to file their returns (form 3B) in the next few days.

GSTR 3B is a simple four-page return form introduced by the CBEC for the month of July and August. For the month of July, 46 lakh dealers had filed the form. But with only five days left in filing the returns for August including Saturday, only 3.05 lakh dealers have filled the return so far.

"We are expecting a huge rush of traders to file their returns on the GSTN in the coming week. We have been requesting the dealers not to keep filing of returns for last day," Sushil Kumar Modi, head of Group of Ministers (GoM) set up to look into the technical issues faced by GST Network, told reporters after the conclusion of its first meeting, here on Saturday.

The GoM was set up to look into the technical issues faced by GST Network headed by Bihar Deputy Chief Minister Modi. Bengaluru-based IT bellwether, Infosys has developed the GSTN software for the government at a cost of Rs 1,380 crore.

Sorting by October
According to Modi, the commitee would be meeting every 15 days, with next meeting also slated to be held in Bengaluru in the first week of October. "In our meeting with GSTN and Infosys we have decided that 70-80% of the problems will be addressed by the end of October," Modi said.

Despite the brouhaha surrounding the launch of GST on July 1, the filing of returns on GSTN has been marred with many problems, like forms not being available and filings not happening in time.

Till now 62.25 lakh dealers have migrated to GSTN portal, while 23.18 lakh new registrations have taken place. Also, a further 11 lakh dealers have registered under the composition scheme of GST.

When opting for the Composition Scheme under GST, a taxpayer will be required to file summarised returns on a quarterly basis, instead of three monthly returns, in case his turnover is below Rs 75 lakh.

Modi blamed the size of GSTN for the glitches. "As you know, this is a huge network. And also we are moving into a new regime. So bit of problems is expected. During implementation of VAT in 2005, I was deputy chief minister as well. I know traders were as sceptical then, as they are for GST," he said.

No penalty
However, when asked the committee said that they won't penalise IT major under service level agreement (SLA). "We can't say that they have failed. These glitches are expected," Revenue Secretary Hasmukh Adhia said.

Earlier, GST Council, the decision-making body of the new GST regime, in its September 9 meeting held at Hyderabad, had decided to form a five-member panel to look into the technical glitches facing GST Network (GSTN) and the GoM was formed on September 12.

Kerala Finance Minister Thomas Isaac, Chhattisgarh Minister of Commercial Taxes Amar Agrawal, Karnataka Agriculture Minister Krishna Byre Gowda and Telangana Finance Minister Etela Rajender are other members of the GoM.

Besides, Revenue Secretary Hasmukh Adhia, GSTN Chairman Ajay Bhushan Pandey and GSTN CEO Prakash Kumar also attended the meeting held in Bengaluru. From Infosys, its Interim CEO and MD UB Pravin Rao and Independent Director DN Prahlad, along with some vertical heads attended the meeting that lasted for three hours.