GSTN : Goods and Services Tax Network

It is a Section 8 (under new companies Act, not for profit companies are governed under section 8), non-Government, private limited company. It was incorporated on March 28, 2013.The Company has been set up primarily to provide IT infrastructure and services to the Central and State Governments, tax payers and other stakeholders for implementation of the Goods and Services Tax (GST).

The Government of India holds 24.5% equity in GSTN and all States governments, including NCT of Delhi and Puducherry, and EC, together hold another 24.5%. Balance 51% equity is with non-Government financial institutions.

GSTN Shareholding:

shareholders

Empowered Group on IT Infrastructure with following members:

  • Member (B&C), CBEC
  • Additional Secretary (Revenue), DoR
  • DG (Systems), CBEC as Member-Secretary
  • FA, Ministry of Finance,
  • Member Secretary, Empowered Group of State Finance Ministers,
  • Member Technology Advisory Group for Unique Projects (TAGUP)
  • Commercial Tax Commissioners of Maharashtra, Assam, Karnataka, West Bengal and Gujarat.

India’s GSTN structure:

Putting in place a robust IT network is an absolute must for implementation of GST. A Special Purpose Vehicle called the GSTN is being set up to cater to the needs of GST. The GSTN shall provide a shared IT infrastructure and services to Central and State Governments, taxpayers and other stakeholders for the implementation of GST.

GSTN AND ITS FUNCTIONS

The GST System Project is a unique and complex IT initiative. It is unique as it seeks, for the first time to establish a uniform interface for the taxpayer and a common IT infrastructure between the Centre and States governments. Currently, the Centre and State indirect tax administrations work under different laws, regulations, procedures and formats and consequently the IT systems work as independent sites.

eIntegrating them for GST implementation would be complex since; it would involve integrating the entire indirect tax ecosystem to bring all the tax administrations (Centre, State, and Union Territories) to the same level of IT maturity with uniform formats and interfaces for taxpayers and other external stakeholders.Inter- state trade of goods and services (IGST) would need a robust settlement mechanism amongst the States and the Centre.

The GSTN is developing a common GST portal and applications for registration, Tax payment, return and

GSTN

MIS/reports,IGST Settlement etc. The GSTN will also be integrating the common GST portal with the existing tax administration IT systems and will be building interfaces for taxpayers.

Further, the GSTN is developing back-end modules like assessment, audit, refund, appeal etc. for 19 States and UTs (Model II States). The CBEC and Model I States (15 States) are themselves developing their GST back-end systems. Integration of GST with front-end and back-end systems is mandatory to be completed and tested in advance for making smooth transition.

This is possible only when there is a strong IT Infrastructure and Service backbone which enables capture, processing and exchange of information among the stakeholders (including taxpayers, States and Central Governments, Accounting Offices, Banks and RBI).

The functions of  GSTN:

gstn and its functions

7 mentioned points above is the core functions of GSTN and will take care of every issue related to GST.

What states need to develop/modify for GSTN?

  • Assessment
  • Refund
  • Recovery
  • Appeal
  • Investigation
  • Survey/Enforcement
  • MIS/Analytics

In case you are confused about GST as a business owner, feel free to consult the GST experts at LegalRaasta. You can get comprehensive assistance on GST Registration and GST Return Filing. You can also use our GST software for doing end-to-end GST compliance.