India’s second largest IT services exporter Infosys has bagged a Rs 1,380-crore contract from the Centre to build technology infrastructure for Goods and Services Tax Network (GSTN), a new single indirect tax structure across the country, which is expected to be rolled out next year.
Talking to FE, GSTN chairman Navin Kumar said, “We have selected Infosys as a managed service provider for this project. They have to build the system and once it is ready they will operate it for five years.”
This is the biggest IT contract awarded by GSTN so far. Queried about any other such similar contracts to be awarded by the organisation, Kumar said, “There are many other deals but they will be of smaller elements.”
Infosys will provide the hardware and software applications for GST and also the end-to-end deployment. For the IT major, India still remains a small market when compared to other geographies accounting for 2.2% of its revenues at the end of first quarter of FY16.
Besides this latest win, the other major government contracts bagged by Infosys include the Department of Post, ministry of corporate affairs, Income-Tax Department and a few state power utilities.
Infosys had bagged the multi-year deal from Department of Post in August, 2012 valued at around Rs 700 crore.
Under the deal, Infosys will implement its core banking solution, Finacle and McCamish insurance product connecting across 150,000 post offices covering 200 million customers under India Post’s Financial Services System Integration plan.
Infosys was also awarded a $50 million contract in 2012, by the ministry of corporate affairs (MCA) to provide an array of technology services. Under this contract, the IT major provides the services, application support and infrastructure operations for at least a period of five years.
The MCA21 project introduced electronic filing, doing away with the need for the filing of paper-based records among its Registrars of Companies and Regional Directors.
GSTN is a non-government private limited company incorporated in March, 2013. The company has been set up primarily to provide IT infrastructure and services to the Central and State governments, tax payers and other stakeholders for implementation of the Goods and Services Tax (GST).