This time, assessees were able to file returns smoothly: GSTN CEO

The deadline for filing of July’s summary input-output returns under the new goods and services tax (GST) had to be extended, as the system faced glitches. Then, the last date for filing other July forms were extended and a group of ministers (GoM) constituted on the issues with the working of GST Network (GSTN), the information technology backbone for the new national tax. The July glitches have been resolved, Prakash Kumar, chief executive officer of GSTN, tells Indivjal Dhasmana. Edited excerpts:

GSTN did not face any large systemic issue when 1.37 million assessees filed returns on the last day of filing for August. There were, however, some glitches earlier for the month of July. What is the change in the system?

In July, there were cases where on account of error in permanent account numbers or other validation, you get those problems. Secondly, on September 5 and 8 (when filing of GSTR-1 for July was on, with the then deadline of September 10), a particular taxpayer had submitted data in a format which was not expected. He submitted over 2.5 million invoices and, in every invoice, he gave the receivers’ numbers. Our design — which we have since changed — was that you first put the TIN (tax identification number) and then details of all invoices relating to that number. Say, for one buyer, if you have 5,000 invoices, you put the TIN of that buyer and then details of all the 5,000 invoices. We fixed the issue by the 8th night but the damage was done by then. 

See, in any large computer application, developed in a very short period of time, there is scope for some improvement. Your iPhone is the ultimate in software development but you keep updating it. This time (for August), we did not face those situations and people were able to file smoothly. From 5 pm to 10 pm (on September 20, the last date of filing returns for August), we constantly had more than 100,000 returns filed in an hour. A huge amount of payments came.

Has the system faced any major issues after the GoM meeting in Bengaluru?

We haven’t had any issues.

The GoM meets in a week. What feedback do you expect?

We will give them a presentation on whatever we were asked, on the experience of the people. They are ministers. They get much faster feedback than any one of us.

In the first meeting of the GoM, it was reported that there was an inability to rectify errors, there were lack of forms, issues with processing applications and bugs in the software that slows down the system. Traders had complained that it took 12 hours to update a form. And, in many cases, the site was inaccessible. Have these issues been resolved?

It was the case related to that particular date, which I have explained. The moment we corrected that, we had 800,000 return filings the next day.

Do any major issues remain to be resolved?

I don’t think so. 

Then, why have only 2.97 million assessees filed the summary input-output return for August, against the 4.9 million that came for the month of July?

You forget that only 1.8 million returns were filed on the first last date (August 20) for the month of July. Then, the deadline was extended to September 25, by when 3.4 million had filed the returns. Since then, till September 23, we had 1.5 million more returns. For the month of August, 3.4 million returns have been filed till 2 pm of September 23.

What is the sanctity of the last date when assessees can file returns after the deadline as well?

They can do it if they are willing to pay the late fee and interest.

Finance minister Arun Jaitley, GSTN, everyone, has requested assessees not to rush for last-day filing but they have been doing so. What could be the reasons?

I believe people were thinking the government would extend the deadline. It did not do so. I have some interesting figures — 50,000 returns were filed in an hour on September 19 and the trend continues for some time on September 20 (the deadline). Then, suddenly afternoon, when no notification for an extension came, return filing touched 95,000 an hour, then 99,000 an hour and then touched and crossed 100,000. It touched 130,000 returns an hour at 7 pm and this continued for two hours. The number of payment transactions also touched 90,000 an hour during this period.

What is the capacity of the system to handle returns? Will that be augmented, given the  fact that people rush on the last day?

We are tuning the software. Earlier, we used to allow 80,000 returns in an hour. We’ve since increased it to more than 100,000 an hour. We will increase it further. 

So, you are confident that the July figures would be touched, even breached, as there were more registrations till August?

Yes. See the figures and assess yourself — there were 1.8 million returns by August 20 and that rose to 2.1 million by August 23. Now, we had 2.8 million by September 20 and 3.4 million by September 23. You have to compare apple with apple. 

The Confederation of Indian Industry has demanded that all modules of GSTN should be activated or enabled to amend core fields in the registration, such as principal place of business, additional place of business, etc. What is your view on this?

This (activation of modules) is coming next week.