The Goods and Services Tax Network (GSTN) has begun looking for a consultancy company to prepare the bid document for the selection of a new service provider and a roadmap for upgrading the system capacity to the next level of GST 2.0 as Infosys’ contract to provide technology support for GST expires in September 2024.
The consulting firm would be responsible for ensuring a competitive bidding process and a smooth transfer of GSTN’s IT service infrastructure to a different technology provider, who would be supplying the software and hardware needed in GST systems for the following 7 years starting on October 1, 2024.
The working scope of the consultancy firm comprises making a request for proposal (RFP) document through the evaluation of the current system on the grounds of the experience of the GST technology system of the former 7 years and furnishing a roadmap for the increasing and functioning for the subsequent contract duration.
On July 1, 2017, Indirect tax reform GST was been launched.
Before the launch of the GST in September 2015 Infosys was provided a contract of Rs 1320 crore contract in order to develop the GST network technology.
The IT giants have surpassed TCS, Wipro, Tech Mahindra, and Microsoft in order to get the contract that comprises of setting the database for the new tax regime, enrolment, registration, end-to-end automation, apart from furnishing a system in order to claim the refunds as well as credits.
The IT infrastructure support required for GST registration, return filing, business tax payment, and tax officer audit has been provided by Infosys.
The GSTN mentioned that “The contracted period of the current Managed Service Provider (MSP), for development, enhancement and operations of the GST System, is nearing its completion. Hence, GSTN intends to execute a competitive bid to finalize an MSP for operating the GST System through the next term of 7 years starting 1st October 2024,”
The email asking for comments via Infosys on the aforesaid development does not produce any answer.
The GST Network will employ a consultant to handle the selection of the MSP for GSTN and assist in the transfer of operations from the current MSP.
The consulting company must have generated average annual revenue of Rs 30 crore during the previous 3 years from IT consulting services, IT application development for indirect tax or direct tax in India, or IT application development for a finance system.
The bid submission date is September 5.
The consultancy firm as a precursor to the appointment of MSP shall design, draft, and make the detailed RFP, started bidding and MSP selection procedure on the grounds of the GSTN and enable the GST system transition to the chosen MSP.
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The prospective MSP mandate is to introduce the revisions in the system’s capabilities and efficient monitoring ecosystem, and not confined to the lift-and-shift of the current GST System.
As per GSTN, The consultant firm will examine the suggestions made by the technical review committee and ascertain the newest technical developments that might be implemented into the GST System RFP. These specifications, refer to system capabilities as GST 2.0.
To determine the capacity sizing needed to operate and improve the GST System for the duration of the contract, the consultancy agency would take into account the current structure, past growth trends, changes made to the system from the original scope for the GST System, and the known government roadmap, such as the changes being proposed by the GST Council, Law Committee, etc.
The consultant agency should also include provisions for the potential MSP to stagger the infra augmentation plan during the course of the project, even if adequate capacity is to be supplied to function for the following seven years taking into account various growth criteria.
Excluding 10 consulting companies some mid-size tech companies that are running ASP/GSP (Application Service Provider/ GST Suvidha Provider) with GSTN would be anticipated to bid as consultants for the same project.
There are now 1.28 crore GST-registered taxpayers. Since 2017, over 67 crore returns have been filed and over 1,250 crore invoices have been uploaded to the GST systems.
