Infosys
India's second-largest IT services exporter Infosys could lower its revenue guidance in constant currency terms for FY2017, second time in about three months. In Picture: An employee is seen behind an Infosys logo at the company's campus in the southern Indian city of Bangalore September 23, 2014 (representational image).Reuters file

Infosys is continuing its work on developing a technology platform for the proposed goods and services tax (GST), even as the uncertainty persists over the tax reform's passage in Parliament.

Bengaluru-based Infosys had secured the contract to develop the technology framework for the GST for Rs 1,380 crore.

Prakash Kumar, CEO of the Goods and Services Tax Network (GSTN), was in Bengaluru on Monday to assess the progress made on the project, The Economic Times reported, citing sources close to the developments.

"From our end, the project is going ahead as per plans — the delay in the Bill getting passed has not stalled anything," said an Infosys executive, adding: "If not this session, there's every chance that the Bill will be passed in the next session. In such a scenario, the technology framework for the GST has to be ready. So, as of now, the project is still going ahead at full steam." 

The Modi government was forced to delay the passage of GST bill "indefinitely", after it failed to get support from Opposition parties in the Rajya Sabha, where it does not have a majority. The government has now postponed the deadline for GST roll-out to 1 June from 1 April, 2016.

But Kumar said the project is being carried out as planned.

"We are already working on the IT framework," he said. "It's going on as planned. You don't develop these kind of applications in one month, it takes time."

Infosys declined to comment on whether it is continuing with the project.

"In case the government makes some changes, we'll incorporate that. That's the way it was planned," said Kumar.

"The three most important functionalities in the online system are registrations, returns and payments. We are closely monitoring the passage of the GST Bill and as of now aiming for the system to be ready by April-May 2016, with the key functionalities in place," said Anurag Dua, director, government and public sector, at PwC.

Also read
Quick Links