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GST e-way bill rollout hit by tech glitches



Wisened from its experiences with the Goods and Services Tax (GST), the Centre withdrew launch of electronic-way (e-way) bill on the first day of the proposed launch on February 1 and extended its trial period. The Finance Ministry has sought a report on what caused the glitch from GST Network (GSTN), which manages the IT infrastructure of the tax system. Prakash Kumar, CEO of GSTN said that the National Informatics Centre (NIC) was probing what could have gone wrong and will soon submit a report.

NIC has developed the e-way bill portal on the GSTN. “The NIC team is working on it (investigating the cause),” he said.

Kumar said, “A trial run is going on and today five lakh e-way-bills have been generated. They (government) are still working on it and will give us a date when it will be re-activated. The government will notify the fresh launch date,” he said.

The GSTN manages the IT infrastructure for the GST system. While the IT service provider, Infosys Ltd, is the contractor that has developed the GST returns filing portal, NIC is the contractor that has developed the e-way bill portal.

Speaking to a leading news agency earlier in the day, Hasmukh Adhia, finance secretary, hinted that the e-way bill could be resumed as early as mid-February. Though, he did not give a definite date.

Spooked by dwindling GST revenue collections month after month, the GST Council – the apex decision-making body for issues related to the new unified indirect tax – rushed the rollout of the inter-state e-way bill from Thursday to plug leaks in GST revenues. This made it compulsory for traders and businesses to generate an invoice for goods above Rs50,000 that moved between states.

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Tejas Goenka, executive director at Tally Solutions, which provides accounting software to firms, told DNA Money that when his clients tried to generate e-way invoices on the portal on Thursday, there was no response.

“The server was not available and the portal just didn’t work. People who needed to generate e-way bill weren’t able to do so and goods were stuck either at transporter’s location, shipper’s location or at the boarder when they needed to show the bill,” he said.

He said there was no problem during the trial period. Goenka said e-way bill portal’s response was very similar to what happened in September, when traders faced problems while uploading GST returns form – a GSTR-1.

Goenka said there was no clarity on what had caused the system to collapse.

He said the GSTN must work out the server load requirement for the e-way portal from the perspective of regular access and peak-time access by the one crore registered taxpayers under the GST.

According to him, if Nandan Nilekani’s proposed tax returns filing system of inward invoice matching was accepted by the GST Council, then the e-way-bill could be scrapped altogether.

The two processes for simplification of GST returns filing being considered by GST Council are Work flow and System flow. Under workflow, businesses can their check input tax credit (ITC) and the enjoy ITC benefits as soon as they approve purchases. Under the System flow, one has to wait for a month to know the ITC and, if there was a mistake in the transaction, then the end-user himself has to detect and rectify it to avail the benefits of ITC.

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Suresh Nandlal Rohira, partner, Grant Thornton India LLP, said it was courageous of authorities to defer the new system until further notice in order to rectify system glitches.

“It will now require more profound attention by the government for a proper rollout once again. The government may now require to watch the sentiments of the industry as this could once again present a similar situation as during GST returns. Not in haste, would certainly not go waste, so the e-way bill system should be rolled out after a few tests,” he said.


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