What is the level of preparedness a day before the rollout of the goods and services tax (GST)?
There are two requisites for the rollout of GST on July 1. First is to enrol the existing taxpayers (VAT, service and other taxes) so that they can migrate to GST from July 1. The second is if there are people who are currently not registered under any tax but want to do business after July 1, to provide registration for such new taxpayers.
We launched our portal in November 2016 and started the process of enrollment and continued until April this year. Around 60.5 lakh of the existing 80 lakh taxpayers enrolled and created their accounts during these six months. Since there were many people left to enrol, we opened the portal again from June 1 to June 15. Another six lakh came during that time. The issue is the number now stands at more than 66 lakh and there is a gap of about 14 lakh. So we were wondering why these people did not come during the period we kept the window open for them. I understand it is because the threshold for registration of GST is Rs 20 lakh whereas it was Rs 5 lakh for VAT in most states and Rs 10 lakh for some states and Rs 10 lakh for service tax. So, out of these 14 lakh people, there are many who are below Rs 20 turnover threshold; so there is no requirement for them to migrate.
However, even if there are even a few existing taxpayers who want to register, then they should be afforded that opportunity. So we have opened the window for them from June 25 again and this will continue for three months. So, the first part of the pre-requisite has been achieved.
Second one – registration for new taxpayers – has also started from June 25. Our portal is now open to new taxpayers. Until this morning today (June 29), 1.65 lakh persons have already filed applications. The registration window for new taxpayers will not close as long as GST is there.
Any apprehensions before the D-Day?
No, we do not have any apprehensions. Only thing is that when people come to the portal, some have a problem filling up their application or signing the application. For that, we have set up a helpdesk for taxpayers. The number is 01204888999. If people have any problem, they can go there and can talk to the agents and seek help. One special arrangement that we have made in the helpdesk is that if the user has a problem, he can permit the agent to access his computer screen and resolve the issue. After the problem is resolved, the user can switch the agent off and he will be denied access.
There has been extensive criticism over delays in testing and release of API (application program interface) to the GST Suvidha Providers (GSPs). What is your reaction to these allegations?
An impression has been created that we have not tested the software or the system. That's absolutely wrong. The fact is for deploying any system you have certain mandatory tests. You cannot deploy an IT system without going through those tests. We have conducted all the tests. Basically, two kinds of testing is done. One is functional testing, which includes unit testing, SI (system integration) testing, release testing and user acceptance testing. Not only that, we have also done beta testing with the actual users. For the non-functional testing, we have done load testing, performance testing and security testing. These are all the tests that are required.
What about release of APIs?
For APIs, we needed the rules of GST laws. The first rules were published in December, based on which our software was developed and API was given to GSPs. Then, the rules got revised in April and we had to alter our software on the basis of the revised rules. So, on that basis, we have been revising APIs also for the GSPs. We had a meeting with GSPs about three weeks back and have agreed on a schedule for release of API and we are sticking to that. We have given them the API specifications for GSTR-1, GSTR-2 and GSTR-3 and the revised APIs are being released tomorrow (June 30) for GSTR-1. For GSTR-2 and GSTR-3, they will come in July. We are following the time schedule we have given to the GSPs.
Many worries still remain in the minds of GSPs. How are you assuaging their fears?
They must talk to us about them.
In view of the recent Petya ransomware attack, is GSTN looking at further beefing up its security system?
Our security is totally beefed up. We are not affected by either Wannacry or Petya. The system that we have takes care that these don't affect us. Our data and systems are absolutely safe.
There are reports of problems being faced by traders in registering on your portal and other such issues. Is this giving you the jitters?
The fact that 1.6 lakh people have already filed application on the portal shows that your (GSTN) system is working. Of course, people will have some problems and they will go to the helpdesk and take assistance. At this point in time, on July 1 there is no other activity, and our enrollment and registration are functioning smoothly. So I don't anticipate any hiccup.
