CBIC notifies ‘Public Tech Platform for Frictionless Credit’ as the system with which information may be shared by the common portal based on consent under sub-section (2) of Section 158A of the Central Goods and Services Tax Act, 2017 vide Notification No. 06/2024 – Central Tax | Dated : 22nd February, 2024.
Introduction: The Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes and Customs, through Notification No. 06/2024 – Central Tax, dated 22nd February 2024, exercises its authority under Section 158A of the Central Goods and Services Tax Act, 2017 (CGST Act). This notification introduces the “Public Tech Platform for Frictionless Credit” as the designated system for sharing information through the common portal based on consent, as specified in sub-section (2) of Section 158A.
Detailed Analysis: The notification, under S.O. 818(E), empowers the Central Government to designate the “Public Tech Platform for Frictionless Credit” for the purpose of information sharing. This platform, defined within the notification, is described as an enterprise-grade open architecture information technology platform. It originated from the Reserve Bank of India’s conceptualization, outlined in its “Statement on Developmental and Regulatory Policies” dated 10th August 2023. Developed by the Reserve Bank Innovation Hub, this platform is designed to facilitate the operations of a vast credit ecosystem.
The platform’s primary objective is to ensure digital access to information from various sources. It operates on a standard and protocol-driven architecture, featuring an open and shared Application Programming Interface (API) framework. The platform’s conceptualization and development align with the Reserve Bank of India’s vision for fostering innovation and efficiency within the credit and financial services sector.
The incorporation of such a platform holds significant implications for the digital transformation of the credit industry. By converging financial service providers and multiple data service providers, the platform seeks to streamline the flow of information. The emphasis on an open and shared API framework underscores the commitment to interoperability and collaboration within the ecosystem. This move aligns with global trends in financial technology, promoting frictionless credit operations and enhancing the overall efficiency of the credit ecosystem.
Conclusion: In conclusion, the Central Tax Notification No. 06/2024 marks a pivotal moment in the evolution of information-sharing mechanisms within the ambit of the CGST Act, 2017. The introduction of the “Public Tech Platform for Frictionless Credit” reflects a forward-looking approach by leveraging advanced technology to enhance transparency and efficiency. As the financial landscape continues to evolve, this notification sets the stage for a more interconnected and seamless credit ecosystem, ultimately benefiting both service providers and consumers. The Reserve Bank of India’s proactive stance in conceptualizing and developing such a platform signifies a commitment to innovation and regulatory adaptability in the dynamic landscape of financial services.
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MINISTRY OF FINANCE
(Department Of Revenue)
(CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS)
Notification No. 06/2024 – Central Tax | Dated : 22nd February, 2024
S.O. 818(E).— In exercise of the powers conferred by section 158A of the Central Goods and Services Tax Act, 2017 (12 of 2017) and section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), the Central Government, on the recommendations of the Council, hereby notifies “Public Tech Platform for Frictionless Credit” as the system with which information may be shared by the common portal based on consent under subsection (2) of Section 158A of the Central Goods and Services Tax Act, 2017 (12 of 2017).
Explanation.— For the purpose of this notification, “Public Tech Platform for Frictionless Credit” means an enterprise-grade open architecture information technology platform, conceptualised by the Reserve Bank of India as part of its “Statement on Developmental and Regulatory Policies” dated the 10th August, 2023 and developed by its wholly owned subsidiary, Reserve Bank Innovation Hub, for the operations of a large ecosystem of credit, to ensure access of information from various data sources digitally and where the financial service providers and multiple data service providers converge on the platform using standard and protocol driven architecture, open and shared Application Programming Interface (API) framework.
[F. No. CBIC-20001/1/2024-GST]
(Raghavendra Pal Singh) Director
