December 3, 2020

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What Is Goods and Services Tax Network(GSTN)?

GSTN is a corporation that is a public-private partnership (P3). It will be in charge of handling all GST portal IT operations by supplying federal, state governments, stakeholders, and taxpayers with IT infrastructure. This forum would resolve all problems related to tax reporting and return filing, making it easier for the GST to be implemented. 

A non-governmental , non-profit organization is GSTN, short for the Goods and Service Tax Network. This gives shared IT facilities and services to both central and state governments, including taxpayers and other stakeholders. For registration, GSTN can provide front-end services, returns and payments to all taxpayers. It will act as the bridge in a nutshell between the government and the taxpayers. In order to get more information about what Is Goods and Services Tax Network(GSTN), we have designed the entire information in an easy-to-understand and expressive manner.

The Goods and Service Tax (GST) was the largest indirect tax reform to have taken place in the history of India’s taxation system. This indirect tax reform forced the integration of an entire country’s diverse tax portfolio into a single taxation structure. The development of an IT framework to handle not only the different tax systems of all 36 states, including their Union Territories (UT) and Union Government but also the need to provide more than a crore taxpayer with a single interface for their GST compliance functions, also resulted in a huge complexity.

More precisely, GSTN is a non-profit , non-governmental entity responsible for running the entire IT system of the GST Portal. With the introduction of GST at the stroke of midnight on 1 July 2017, India’s taxation system was revolutionised. The ‘one-nation, one-price’ framework has totally changed the manner in which value-added tax is levied in India. GST filing is done online, as well as GST return filing, which has been one of India’s key trends towards digitalization and Easy Doing Business. In connexion with this, under the name of the GSTN or GST network, a non-profit , non-governmental organisation has been set up.

Functioning Of GSTN(Goods Or Services Tax Network? 

  • Goods and Services Tax (GST) system application design, development, and operation
  • Migration by taxpayers from the former regime into the GST regime
  • Room for training and construction
  • GST development and administration of the eco-system with GST Suvidha Providers (GSPs)
  • Back-end process for 27 States and Union Territories (UTs) evaluation appeal, etc.
  • IT technology acquisition, commissioning state-of-the-art security appliances
  • Systemic resilience against failures and the disaster recovery process
  • Help-desk Configuration and Activities

Basic Functions of GSTN?

  • Payments and Refunds
  • Various Returns
  • Registrations
  • Invoices

Goods Or Services Tax Network(GSTN) – 

Structure – 

A non-governmental organization (PPP company) is the GST network, which means that 51 percent of this organisation is owned by private parties. The government holds the remaining 49 percent. GSTN ‘s approved capital is > 10 crore. The 49 percent of the government’s shareholding is distributed evenly between the central and state governments, i.e. 24.5 percent to the center and the Indian Union states. Dr. Ajay Bhushan Pandey (Chairman), 1984 Batch IAS (Indian Administrative Services) servant, heads the Goods and Services Tax Network. With Shri Prakash Kumar, the GSTN CEO.

GSTN (Goods Or Services Tax Network) Objective

Offering the Central and State Governments, taxpayers and other stakeholders with a common and shared IT infrastructure and services to enforce the Goods and Services Tax (GST).

(b) To provide taxpayers with traditional registration, return and payment services.

(c) work with other organizations to create a GST ecosystem that is effective and user-friendly.

(d) Promote and partner with GST Suvidha Providers (GSPs) to launch GST Applications to provide stakeholders with streamlined services.

(e) conduct research, review best practices, and provide the tax authorities and other stakeholders with training and consultancy.

Provide the tax departments of the central and state governments with effective back-end facilities on request.

(g) Build functionality for central and state tax administration, such as the Tax Payer Profiling Utility (TPU).

(h) Help the tax authorities to enhance tax enforcement and the transparency of the system of tax administration. Often, on request, provide the central and state governments and other stakeholders with any other related services.

What Are Goods Or Services Tax Network (GSTN) Features And Characteristics?

  • National Information Utility-A trusted National Information Utility(NIU) has been considered to be the GST Network. This basically means that the network is responsible for providing a secure, robust, and effective IT infrastructure and for the transfer of knowledge.
  • Sharing Expenses – The costs of the GSTN are divided in a 1:1 ratio between central and state governments. Depending on how many taxpayers are involved in the state, states share expenses. These costs include not only running costs such as leases, salaries, and IT services, but also fraud analytics, security audits, etc.
  • Information Protection-Compared to every other individual player, the central government owns a major share of the GST network and hence the major share of responsibility for the confidentiality and security of the taxpayers’ information. The composition of the board, the processes of special resolutions, the agreement of shareholders, and agreements between the network and other state governments will be governed by the central government.
  • Expenses-User fees shall be charged in fair proportion (i.e. 50:50) on behalf of all users entirely by the Central Government and the State Governments. The share of the state would then be distributed to individual states, in proportion to the number of state taxpayers.