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Why has Infosys made a mess of the GST in software?

I must say that Infosys is alone not responsible for this. The software is very good. The only thing is that the government initially tried to design such software which will not have any loophole.

The first thing they made very difficult is matching the invoices .i.e. if supplier uploads the invoices and the receiver shall take the input tax credit. This was very important because most frauds are taking place when it comes to taking ITC.

Thus, this has resulted almost every taxpayer while dealing on the portal to file GST returns. Later, they changed suspended the GSTR 3 and GSTR 2 return filing. However, with only GSTR 3B and GSTR 1 still the government are facing tax evasion cases in case of input tax credit.

Therefore, from October 2019 onwards government has brought new GST Return Called GST RET 1. Here the taxpayer has to attach the annexures called GST ANX 1 and GST ANX 2 to file GST RET 1 return.

According to the new return filing system the taxpayer has to continuously upload the invoices. On the other side the receiver has to accept the invoices to take the input tax credit. He may reject and keep invoices pending if there is some mismatch.

Here, the taxpayer cannot add invoices and take input tax credit. Instead of that he will have to ask the supplier to upload the invoices if not uploaded. Ask him to correct the invoices or keep pending for further action from supplier. Thus there is an improvement is new return filing system and we believe this will be easy for the taxpayer.

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