What is GSTN?

Janhavi Wagh -
GSTN: Goods and Service Tax Network

Introduction:

The GSTN (Goods and Service Tax Network) is a non-profit, non-government organization. It will manage the GST portal's entire IT system, which is the mother database for everything GST. The Government of India will use this portal to track every financial transaction. It will provide the taxpayers with the services – from filing taxes to registration and maintaining all tax-related details.

1. GSTN Structure

51% share is own by private players in the GSTN, and the government owns the rest of the remaining share. Rs.10 crore (US$1.6 million) is the authorized capital of the GSTN, whereas 49% of the shares are divided between the state and Central governments equally, and the private banks will have the remaining shares.

The GSTN has also been approved for Rs. 315 crores for a non-recurring grant. In September 2015, The contract for developing this vast technological backend was awarded to Infosys.


Detailed Breakup of GSTN’s Shareholding:

detailed breakup of GSTN’s shareholding

2. GSTN Salient Features

GSTN is a sophisticated IT enterprise. It will create a common and shared IT infrastructure between the Centre and States and will also establish a uniform interface of the taxpayer.


Established National Information Utility (NIU)

The GSTN is a trusted NIU(National Information Utility). It provides an efficient, reliable, and robust IT backbone. It helps in the smooth functioning of GST in India.


Handles Complex Transactions

GST is a destination-based tax. All over India, the adjustment of IGST for inter-state trade at the central and various states level will be extremely complex due to the large volume of transactions. A rapid settlement mechanism amongst the Centre and States will only be possible when there are a robust IT infrastructure and service backbone that processes, captures, and exchanges details.

Secured Information

As it is necessary to keep all taxpayers confidential and secure, the government will have strategic control over the GSTN. The composition of the Board, Shareholders Agreement and mechanisms of Special Resolution, and agreements between the GSTN and other state governments, the Central Government will have control all over. The shareholding of government is at 49% is more than that of any private organization.

Shared Expenses

The Central Government will pay the entire user charges, and on behalf of all users, the State Governments will pay in equal proportion (i.e., 50:50). The state share will then be apportioned to individual states, in proportion to the number of taxpayers in the state.

Types of Expenses


3. GSTN Function

The Common Portal, which is the linking between the government and taxpayers, GSTN, is the backbone of it. The entire process of GST is online, starting from registration to the filing of returns.

It has to support about 3 billion invoices per month and the subsequent return filing for 65 to 70 lakh taxpayers.

The GSTN will handle

  • Invoices
  • Various returns
  • Registrations
  • Payments & Refunds


What is GSTIN?

How to Register for India GST?

GST Registration Procedure


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