Nandan Nilekani, the chief of Unique Identification Authority of India, has told the finance ministry that he would give top priority to developing a software platform for migrating the country?s complex indirect tax system to the proposed Goods and Service Tax, over its other IT projects.
The Authority is burdened with several IT projects for the Tax Information Network, the New Pension System, the National Treasury Management Agency and the Expenditure Information Network, which could threaten the timely implementation of the GST platform. Nilekani has now assured the Central Board of Excise and Customs (CBEC) at a recent meeting that the Authority would develop the IT system for GST on a war footing to meet the April 2011 deadline.The Central Board of Excise and Customs (CBEC) is in constant discussions on the GST technology framework with Nandan Nilekani who is heading the project. Nilekani met CBEC officials recently to work out modalities of the information techonolgy (IT) platform being developed to enable smooth implementation of the proposed Goods and Services Tax (GST), a senior official told FE.
?The project is very gigantic if we see in terms of the work that is to be done. There are thousands of bills generated everyday and before we bring in GST, we would have to link it all up. The levy is based on a chain, so an issue at any of the stages could have its ramifications,? the official said.
GST technology framework is part of the Technology Advisory Group for Unique Projects (TAGUP) announced in this year?s Union budget by Finance Minister Pranab Mukherjee. Nilekani heads the five projects including GST.
IT framework for GST assumes importance at the time as the deadline for introducing the new tax regime draws closer. The regime would link the indirect tax system in the country. Under the new system various indirect taxes levied by the Centre and States would be replaced by one GST. In his budget speech, finance minister had said, ?creation of IT projects that are reliable, secure, and efficient is the need of the hour for an effective tax administration and financial governance system?. The indirect tax administrations at the Center and the States level are already being revamped. Their internal work processes are being upgraded based on the use of Information Technology under a project Automation of Central Excise & Service Tax (ACES) that has already been rolled out throughout the country this year.
Similarly, a Mission Mode Project for computerization of commercial taxes in states has been approved recently. With an outlay of Rs 1133 crore of which the Center?s share is Rs 800 crore, the project will lay the foundation for the launch of GST.