News highlights: Shiv Sena chief disagrees with Gujarat exit polls projecting BJP#39;s win

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    Govt ignored warnings over GST rollout, says sources

    The Indian government ignored several warnings from private companies that the complex technology required for a nationwide Goods Services Tax (GST) to work smoothly was not ready for launch, several people who worked on the project told Reuters. Weeks before the July 1 start of Indias biggest tax overhaul in decades, the government declared itself ready and chided industry experts who said more time was needed to prepare for the changes.

    However, more than 10 tax and IT consultants who worked on the project said that behind the scenes the government was ignoring warnings for more testing of the complex system even as it was pushing through late changes. While sources said Infosys, which built the GST technological network, made basic errors, they said government officials have not accepted any responsibility for the glitches in the GST roll out.

    The government is still making changes to tax rates, filing deadlines, and other features, making it difficult to stabilise the system, they said. At that time, the powers in New Delhi were mocking industry, saying the governments ready, but industrys not. said the director of a financial planning firm involved in developing the GST network. Now people are laughingly asking, so who was really not ready? he said.

    Sources said they had warned government officials in the run up to the launch that a key part of the GST technology, allowing users to connect to the GST network, was not working smoothly. There were other technical flaws that resulted in incorrect tax assessments, they said. One technology officer involved in the GST rollout said his company had to deal with a revolving door of government requests in the run up to the launch. The director of the financial planning firm said the government was adamant on introducing GST on July 1. Obviously, it led to chaos, he said.

    A person working for an audit firm said in one example, a test adopted by GSTN did not reflect real-world conditions. GSTN in the month of April and May gave 100 companies an invoice to upload and see whether it was getting uploaded or not, he said. You cant really test the system by taking one invoice as a sample, he said. GSTN told companies it would do more testing with a larger number of transactions. That never happened.

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    Govt ignored warnings over GST rollout, says sources

    The Indian government ignored several warnings from private companies that the complex technology required for a nationwide Goods Services Tax (GST) to work smoothly was not ready for launch, several people who worked on the project told Reuters. Weeks before the July 1 start of India’s biggest tax overhaul in decades, the government declared itself ready and chided industry experts who said more time was needed to prepare for the changes.

    However, more than 10 tax and IT consultants who worked on the project said that behind the scenes the government was ignoring warnings for more testing of the complex system even as it was pushing through late changes. While sources said Infosys, which built the GST technological network, made “basic errors”, they said government officials have not accepted any responsibility for the glitches in the GST roll out.

    The government is still making changes to tax rates, filing deadlines, and other features, making it difficult to stabilise the system, they said. “At that time, the powers in New Delhi were mocking industry, saying ‘the government’s ready, but industry’s not.’” said the director of a financial planning firm involved in developing the GST network. “Now people are laughingly asking, ‘so who was really not ready?’” he said.

    Sources said they had warned government officials in the run up to the launch that a key part of the GST technology, allowing users to connect to the GST network, was not working smoothly. There were other technical flaws that resulted in incorrect tax assessments, they said. One technology officer involved in the GST rollout said his company had to deal with a “revolving door” of government requests in the run up to the launch. The director of the financial planning firm said the government was “adamant” on introducing GST on July 1. “Obviously, it led to chaos,” he said.

    A person working for an audit firm said in one example, a test adopted by GSTN did not reflect real-world conditions. “GSTN in the month of April and May gave 100 companies an invoice to upload and see whether it was getting uploaded or not,” he said. “You can’t really test the system by taking one invoice as a sample,” he said. “GSTN told companies it would do more testing with a larger number of transactions. That never happened.”

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