GST was introduced in 2017, and its complexities raised unrest among all the taxpayers. The goal of GST is “One nation, One tax,” which is not an easy feat to achieve. The sea of challenges is encountered because of the complexities in implementing a new tax system. One of the significant complexity is compliances; it should be unchallenging. The backbone of this whole tax system is the digital and technological infrastructure that will link taxpayers and state and Central Governments. To achieve this goal Goods and Services Tax Network (GSTN) was formed.
Furthermore, because GST is a destination-based tax, the inter-state trade of goods and services (IGST) will require a comprehensive settlement system between the states and the central government. This System is only possible if a robust IT infrastructure and service backbone allow capturing, processing, and interchange of data across stakeholders such as taxpayers, States, Central governments, banks, and RBI.
The Goods and Services Tax Network (GSTN) is a non-profit, non-government organization that provides IT infrastructure and services to the central government, state governments, taxpayers, and other stakeholders. GSTN enables all taxpayers with frontend services such as registration, returns, and payments, and it will serve as a conduit between the government and the general public. The primary goal of the Goods and Services Tax (GST) is One Nation, One Tax, and One Market, which has been realized due to this unified System and IT platform. The GST System Project is a one-of-a-kind and complicated IT project, and it is unique as it aims to create a standard interface for taxpayers.
The GSTN is 51 percent owned by private investors, and the government owns the remainder 49 percent, which is equally divided between the Central and State governments and the rest held by commercial banks. The equity structure of GSTN is Central Govt 24.5%, State Govts 24.5% , HDFC 10%, ICICI Bank 10%, HDFC Bank 10%, NSE Strategic Investment Co 10%, LIC Housing Finance Ltd 11%.
Important Features of GSTN:
- Operations management:
The GSTN can handle a large volume of complex operations, such as interstate GST adjustments (IGST). The complex IT infrastructure allows for quick data interchange between taxpayers and the GSTN.
- Trusted National Information Utility (NIU):
The GSTN is the most dependable National Information Utility (NIU) that allows for the exchange of verified information.
- User charges are shared:
User charges are entirely shared between state and central government equally.
- Information security:
The government will have strategic control over the GSTN to keep taxpayers’ information confidential and secure. The membership of the Board, Special resolution processes, shareholder agreements, and agreements between the GSTN and other state governments will all be under the control of the central government.
Functions of GSTN:
- The Taxpayer’s details are thoroughly Verified by GSTN and then passed on to central and respective state governments for approval.
- Once the user is registered, a unique GSTIN is generated and allotted to the user. Then information about GSTIN is notified to the concerned government authorities.
- The GSTN’s primary function is to identify and rectify any discrepancies between purchase and sales invoices so that the Taxpayer can take advantage of the Input Tax Credit (ITC) benefits.
- One of the essential functions of GSTN is hassle-free GST returns filing. CGST, SGST, or IGST unified return filing process ensures burden-free taxpayers.
GSTN is a complex information technology network that makes the taxation system for taxpayers as easy as it can be. It also embarks on a country’s vision of digital India, and revenue from taxes is essential for the growth of the country’s economy. More taxpayers fall under the strict laws of GST, and there will be fewer tax evaders.
The author, Sushant Gangurde is a legal analyst @Taxblock India private limited and aims to educate and inform the masses about various tax laws and financial planning.
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