Did you know about GSTN? The one-stop-haven for all your GST needs

After the Goods and Service Tax (GST) was introduced in India in July 2017, the Indian government prudently actioned security clearance to GSTN – the Goods and Service Tax Network. The reason this was a welcome move was that the GSTN doubles up as the tech backbone of the GST processing system.

Over 5 years since its inception into mainstream markets and media, GSTN continues to remain a privately held company under Section 8 of the New Companies Act, incorporated on the 28th of March 2013. Today, the GSTN is used to track down every single financial transaction and provide varied services to taxpayers. The portal is accessible to all.

While private business professionals own a 51% share in the GSTN, the Indian government owns the rest. Out of the total authorized capital of the GSTN, which stands at Rs 10 crore ($1.6 million) – 49 per cent of shares are divided equally between the Central and State governments. The remaining shares rest with private Indian banks.

Here’s a sneak peek into the definition and salient features of GSTN.
 

Quick definition: What is GSTN (Goods and Service Tax Network)?

The Goods and Service Tax Network (or GSTN) is a non-profit, non-government organization that manages the entire IT system of the GST portal. In layman’s terms, this is the parent database for all things related to GST.

The IT infrastructure will serve the Indian government in tracking financial transactions, tax payments, and comprehensive services to the taxpayers, such as registration on the portal, filing taxes, maintaining records of all the paid taxes, and getting quick query redressals.

The GSTN infrastructure is being developed with the purpose of making taxation convenient for both taxpayers and the government. With numerous complex transactions in large volumes, the GSTN network provides a secure, reliable, and robust platform for tax records and management.   

What’s a GST number?

The Goods and Service Tax Identification Number or GSTIN number, colloquially referred to as “GST number” is a unique numeric code that each taxpayer receives once they have registered on the official GSTN portal. Your GSTIN number or GST number is directly based on your PAN card registration and PAN details.

Structure of GSTN

The goods and services tax network system is unique and has a robust structure involving central and state government and private banks. Private banks and financial institutions own a 51% share in the GSTN, and the remaining 49% share is equally divided between the central and state governments. The overall authorised capital allocated to the GSTN is 10 crores, which is distributed between private players and the government in proportion as mentioned above.

The GST Network has also been allocated a non-recurring grant of ₹315 crores. The technological development was undertaken by Infosys in September 2015. The current chairman of the GSTN is Sanjay Malhotra, a 1990 batch IAS Officer from the Rajasthan cadre and Manish Kumar Sinha is the chief executive officer, a 1993 batch IRS Officer.  

Key functions of the GSTN:

GST network provides an IT ecosystem for the taxpayers and the government. Thus, it forms a communication channel between the business taxpayers and the government authorities. The following are the key responsibilities of the GSTN.

• Invoices

GSTN manages and processes over 2 billion invoices every month from over 65 lakh taxpayers. It tallies the GST invoices to check for errors and rectifies them for taxpayers’ benefits.

• Various Returns

The GSTN is also responsible for processing and forwarding returns to state and central government. Since it is a unified body for filling all types of GST returns, such as CGST, SGST, and IGST, the GST network eliminates the need for multiple return filings.

• Registrations

 It also provides a platform for taxpayers to register for paying GST online. GSTN onboard individuals looking to register for GST under new taxation laws. It creates their profiles and issues identification numbers and manages their GST profiles.

• Profile analysis

 When an individual registers, GSTN also undertakes the profile analysis and verification process. It sends individuals’ details to central and state government tax authorities for approval.

Features and Benefits of GSTN

1. Trusted and reliable national utility

The GSTN has developed a trusted and reliable IT infrastructure for the flow of GST data. It provides a secure and robust network for the smooth functioning of goods and services tax in the country. So,
The GSTN is a trusted and respected National Information Utility that handles complex transactions

2. Security FIRST!

Since a major proportion of GSTN is owned by the central and state governments instead of an individual player, the government authorities oversee data security and privacy and hold the responsibility of confidentiality. All information is secured and closely monitored by authorities and are secure.

3. No added overheads

GSTN’s cost optimization model ensures all expenses will be shared and taxpayers do not bear additional burdens to track their GST records

4. Payments

Goods and Service Network provides options to pay GST online or offline. The taxpayers can choose a mode at their convenience. Here’s how taxpayers can pay their GST.

• Online payment

An individual can use the net banking facility to pay their GST. The Reserve Bank of India has authorised a few banks to collect GST payments. After logging into their bank accounts, taxpayers can choose from the list of agency banks and make payments.

• Offline payment 

 Individuals can also pay GST offline by visiting an agency bank and paying over the counter. After successful payment, the bank will notify the RBI and the GST portal to update payment details.

5. Expense distribution

The user charges are to be borne by the central and state government, in a 50:50 proportion, on behalf of all users. The state’s share will be distributed based on the number of taxpayers in a specific state.

And running it all, the backbone of the GSTN portal is a hi-tech interface that helps seamlessly navigate between taxpayers and the Indian government

The 100% digitized process, starting from registration to the filing of returns, supports over a whopping 3 billion invoices, every single month. The subsequent return filing for 70+ lakh taxpayers is also managed within the same network. The sheer volume could blow one’s roof off, right?

Disclaimer

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