Infosys’s "Jugaad" Solution Raises Bigger Questions on Tax Tech Quality (HSN Codes mandatory)

Introduction

With the introduction of mandatory HSN code reporting for all taxpayers — even those with no B2B transactions — GST filing has turned into a technical minefield for many. Taxpayers are encountering portal errors while filing GSTR-1, despite having no taxable outward supplies requiring HSN disclosure.

What’s more surprising? The solution offered by Infosys, the GSTN portal developer, is not a system fix — but a workaround that’s now being seen as a classic case of “jugaad taxation.”

The Glitch

Until recently, if you didn’t have any B2B sales or outward taxable supplies with HSN details, you could leave the HSN Summary blank while filing GSTR-1.

But now, even taxpayers with purely B2C or nil-rated outward supplies are being forced by the portal validation rules to enter at least one HSN row, failing which the return cannot be saved or filed.

This affects:

• Small businesses

• Pharmacies with exempt goods

• Service providers with NIL-rated services

• Proprietors without regular B2B clients

The Infosys "Fix"

Rather than update the portal logic, Infosys issued a tweet-like solution:

✅ Enter any random HSN code

✅ Keep the value, quantity, and tax fields as 0

✅ Save and file the return

No error. Return filed. Problem solved — or is it?

Why This Workaround Is Problematic

1. Legally Questionable – Entering fake or dummy HSNs (even with zero value) may not sit well with the spirit of accurate tax reporting.

2. Creates Audit Risk – If this becomes common practice, it could create mismatches during scrutiny or assessments.

3. Portal Logic Is Flawed – The GSTN should be smart enough to skip HSN validation when there are genuinely no applicable entries.

4. Reflects Poor Tech Governance – ₹1,380 crore has been spent on building this system. Is this the best taxpayer experience we can deliver?

Compliance Shouldn’t Be a Hack

Taxpayers expect robust, well-tested portals. They should not have to rely on jugaad to file returns. This raises a bigger issue — are we simplifying compliance or creating new roadblocks that defeat the ease-of-doing-business goal?

What Can Be Done

🔹 Temporary Use of the Workaround – If you're affected, yes, use the dummy-HSN trick to avoid non-filing penalties.

🔹 Raise Tickets – File issues on the GST helpdesk and tag @Infosys_GSTN and @cbic_india on social media.

🔹 Advocate for Fixes – Industry bodies and tax professionals must collectively push for proper validation rule fixes, not shortcuts.

Conclusion

At Infosential LLP, we believe technology should be an enabler — not a hurdle — in tax compliance. As consultants, we’ll continue to guide you through such glitches, but we also call upon authorities to move from jugaad to genuine systemic reform.

Need help with your GST filings or facing issues with portal errors?

Reach out to us at contact@infosential.in or visit www.infosential.in