A recent advisory from Infosys GSTN, the technology backbone of India's Goods and Services Tax (GST) network, addressing a persistent GSTR-1 filing issue, has drawn sharp criticism and ridicule from tax professionals and businesses alike. The "solution" offered by Infosys GSTN, which involves entering dummy data to bypass a system error, has been widely slammed as a "jugaad" (makeshift solution) and a reflection of the GST portal's ongoing technological shortcomings.

The tweet from @Infosys_GSTN acknowledged a specific problem related to Table-12 (HSN summary) of GSTR-1, particularly for taxpayers with only B2C (Business-to-Consumer) sales. While Table 12B (B2C HSN summary) is stated as non-mandatory, taxpayers often face an error if Table 12A (B2B HSN summary) is left blank, especially if there are entries in Table 8 (nil-rated, exempted, and non-GST supplies).

The "Solution": Enter Dummy Data

Infosys GSTN's suggested workaround is to "enter any HSN code and any UQC (Unit Quantity Code) in Table 12A and fill all other fields with '0' to proceed." This, they claim, will prevent the system from showing an error. The tweet concluded by stating that the system would be upgraded shortly to simplify this step for taxpayers with only B2C supplies.

Tax Professionals React: "Jugaad" and Disastrous IT

This "solution" was met with a torrent of sarcastic and frustrated responses from the tax community.

Jay Matoliya (@Jay_Matoliya) sarcastically remarked, "Infosys and GST: Where 'upgrade' means more blanks to fill and more headaches to bear!" Rohit Jain (@rohitjain2021) captured the sentiment with a humorous exchange: "Officer: Ye kya gadbad kar di.. Infosys: Mere pass ek jugaad hain sir…" Jacky Bhansali (@jackybhansali) further amplified the "jugaad" theme with a popular Hindi song lyric, highlighting the forced improvisation.

Hitarth Dhebar (@Hitarth_Dhebar) expressed strong disapproval, stating, "So now portal maker will suggest jugaad officially.! Disastrous IT system of Govt portals." He tagged the Prime Minister and PMO India, urging their attention to the ground realities.

Parth Patel (@ca_parth) encapsulated the frustration of seven years of GST with a four-step summary: "1st step: @Infosys_GSTN make some new changes in GSTR Mandatory. 2nd step: we work actually on filing. 3rd step: we report errors. 4th step: @Infosys_GSTN says it's technical glitch. Reporting is not now mandatory. Summary of 7 years era of GST and great @Infosys_GSTN."

Beyond HSN: Other Critical Issues Emerge

The discussion also brought to light other critical GSTR-1 filing issues:

• Reverse Charge Mechanism (RCM) only filings: Rajeev Bullet (@rajeevbullet) highlighted that filing GSTR-1 with only RCM entries in Table 13 prevents the return from being filed.
• No outward supply cases: CA Shubhi Gupta (@ca_shubhi) pointed out issues for taxpayers with data only in Table 13 (self-invoice, payment voucher etc.) but no outward supplies, where the portal fails to generate the return.
• Non-GST Goods Summary: BL JAIN (@BLJAIN51294946) raised concerns about the non-generation of summaries for non-GST goods like petroleum products due to a lack of document details.
• Mismatches and Complexity: Adv Sourabh Maheshwari (@AdvSourabh29) criticized the solution for leading to more mismatches and questioned the practicality of detailed HSN reporting for businesses in rural areas.
• Lack of Official Circulars: Nitin Nayak (@CANitinNayak) urged CBIC to issue an official circular, emphasizing that tweets are insufficient for tax officers who require formal instructions.

"Ease of Doing Business" Under Scrutiny

Vibhor (@heyvibhor) passionately expressed the sentiment of many, calling the situation "a joke." He questioned the "ease of doing business" narrative, stating that "even after 8 years the functionalities aren't ready yet and still the taxpayers are getting fined and penalised for half cooked systems."

Karan Rana (@karanrana444) directly challenged Infosys GSTN and CBIC, stating, "We are not going to do anything due to your system validation issue. You have to take responsibility for all the consequences for the late filing. Atleast do some work properly, we are not here to tolerate Infosys negligence."

Ayon Saha (@CA_Ayon_Saha) voiced the practical difficulties faced by clients, especially distributors of various items, in dividing HSN details between B2B and B2C, questioning the very necessity of such granular detail.

The frustration culminated in Naren Reddy (@NarenReddyE) tagging Infosys co-founder N.R. Narayana Murthy and Finance Minister Nirmala Sitharaman, demanding compensation for the extra work caused by system failures and calling out Infosys GSTN for their "shame" in providing last-minute, inadequate solutions.

The ongoing issues with the GST portal, particularly the need for "jugaad" solutions, underscore the persistent challenges in India's journey towards a seamless digital tax regime. The tax community awaits a more robust and reliable system, rather than temporary workarounds, to ensure smooth and error-free compliance.