Infosys has secured the high-profile contract to develop and operate the technology platform for the proposed goods and services tax (GST).
Beating the biggest names in Indian IT and US tech giant such as Microsoft, Infosys has bagged the prestigious contract to build and operate the GST platform with a bid of Rs 1,380 crore.
The GST IT system will provide a standard interface for the taxpayer including registration, filing of returns and payment of tax and a common and shared IT infrastructure between the Centre, the states and other bodies such as the Reserve Bank of India.
Bengaluru-based Infosys, India's second-largest software exporter, declined to comment on the development. "We are not offering comments as we are yet to receive an official communication on this," a company spokesperson said.
Bigger rival Tata Consultancy Services, and Tech Mahindra were also said to be in the race for the prestigious contract, which entails designing, developing and maintaining the GST system.
GSTN was incorporated in March 2013 as a not-for-profit, non-government, private limited company. The central government holds 24.5 per cent equity in the company and all states, including Delhi and Puducherry, and the Empowered Committee of state finance ministers together hold another 24.5 per cent. The remaining 51 per cent equity is with non-government financial institutions.
The proposed GST would replace a plethora of indirect taxes at the central and state levels with a single levy and create a unified national market in the country from April 1, 2016, a deadline that may be missed if the Congress continues to oppose the bill.
All states will use common IT processes under the GST and most are revamping their systems. Registrations on the portal are expected to begin from January.