India’s entire taxation system underwent a significant transformation with the introduction of the Goods and Services Tax, or GST registration. Subsequently, GSTN was established to facilitate the implementation of GST services by providing a robust IT infrastructure.
The Goods and Services Tax Network is commonly known as GSTN, functioning as a non-profit, non-governmental organisation that delivers IT services and oversees the administration of the complete GST Portal Login. It acts as a bridge connecting the government and the taxpaying public. The GST Network provides crucial services, making processes such as registration, tax filing, integration of banking systems with tax payments, and other related activities more accessible for taxpayers.
Understanding the Structure of GSTN
The Goods and Services Tax Network plays a central role as a unified platform connecting taxpayers with the government. This intricate system involves contributions from both governmental and commercial entities to establish its framework.
Ownership and Capital Structure of GST Network
Within the Goods and Services Tax Network’s total authorised capital, the government holds a 49% stake, while private individuals, encompassing investors and enterprises, own the remaining 51%. The official capital of the Goods and Services Tax Network is ten crores in Indian currency.
Governance and Management of Goods and Services Tax Network
The Government is responsible for the administration of the Goods and Services Tax Network. The Goods and Services Tax Network board, comprising 14 members, is designed to represent both central and state governments. Among these, seven members represent the government, while the remaining members, three of whom are private, function autonomously. The board holds the responsibility of selecting a Chief Executive Officer to oversee the operations of Goods and Services Tax Network.
Services of the GST Network
The Goods and Services Tax Network operates as a dynamic platform, providing essential IT services to both the government and taxpayers. Its advanced IT infrastructure facilitates seamless completion of critical GST-related tasks.
1. Submission of Return
Goods and Services Tax Network offers a unified system for filing GST returns, covering SGST, CGST, and IGST. It simplifies the filing process by preparing and submitting tax returns to the government, subsequently distributing them to both Central and State governments.
2. Registration for Filing Tax
Providing taxpayers with GST Identification numbers, Goods and Services Tax Network facilitates the registration process. After verifying the registration information, the portal securely stores it and forwards the details to the relevant authorities.
3. Compliance with Bills
To prevent errors, GSTN meticulously compares purchase and sale invoices. The portal verifies B2B invoices with the respective vendors, ensuring accurate matching and enabling taxpayers to benefit from Input Tax Credit.
4. Examination of Taxpayer Profile
Before GST registration, it is crucial to verify taxpayers’ information. GSTN requires comprehensive information during the registration process, and after thorough verification, the details are forwarded to Central and State Tax authorities for approval.
5. Integration of GST Calculation
One of GSTN’s critical responsibilities is the calculation of integrated GST for interstate supplies of goods or services. The tax revenue is evenly distributed between the Central and State governments.
6. Combining Tax Payment Information with Banking Network
GSTN serves as a conduit for transactions between banks and taxpayers. After tax payments, Goods and Services Tax Network integrates taxpayer information, collaborating with the Reserve Bank of India to establish protocols for banking system integration.
7. Goods and Services Tax Network’s New Additional Functionalities
Periodically, Goods and Services Tax Network introduces optional functionalities, covering various themes such as return, payment, and refund. These additional features enhance the overall capabilities of the Goods and Services Tax Network platform.
Key Characteristics of Goods and Services Tax Network
The Goods and Services Tax Network is marked by several vital characteristics, each playing a crucial role in its functioning. Mentioned below are these key features:
1. Partial Ownership Structure
GSTN operates under partial ownership, with both public and private financial institutions having a stake. Notably, 51% of the company is privately owned, while the government holds the remaining 49%.
2. Supply of IT Infrastructure for GST Operations
A fundamental characteristic of Goods and Services Tax Network is its provision of a robust IT infrastructure that simplifies the utilisation of the indirect tax system. This infrastructure supports the seamless execution of various GST-related tasks, including the computation of input tax credits and integrated GST.
3. Payment Procedures
Goods and Services Tax Network facilitates online and offline payment procedures for taxpayers. Online payments can be made through designated banks authorised by the Reserve Bank of India for tax collection. Additionally, taxpayers have the option to make offline payments by directly visiting designated banks, which then update the information and notify both the RBI and GST portals.
4. Knowledge Delivery
Goods and Services Tax Network serves as a platform for the efficient receipt and maintenance of information related to return filing, challan creation, IGST payment settlement, and more. It plays a crucial role in disseminating knowledge related to GST processes.
5. Security of Goods and Services Tax Network
Given the sensitive nature of the information it handles, Goods and Services Tax Network places a strong emphasis on security. The responsibility for safeguarding the GST network and ensuring the confidentiality of pertinent taxpayer information lies with the Central Government.
6. Shared Expenses
To manage the costs associated with the Goods and Services Tax Information Network, the Central and State governments share the expenditures related to various functions. This collaborative approach ensures effective financial management in the context of Goods and Services Tax Network operations.
Major Goals of Goods and Services Tax Network
Mentioned here are the primary objectives of GSTN:
1. Centralised Filing and Payment Platform
The primary goal is to provide a centralised portal where all states can seamlessly file returns and handle payments. This centralisation simplifies the overall process for both taxpayers and state authorities.
2. Integration of Stakeholders via GST Site
GSTN seeks to connect stakeholders, including the government and taxpayers, through a single platform, the GST site. This integration promotes streamlined communication and collaboration among all involved parties.
3. Establishment of a Thriving GST Eco-System
A key objective is to create a thriving GST ecosystem, fostering an environment conducive to the smooth operation of the tax system and supporting economic activities.
4. Privacy and Security of Taxpayer Information
Goods and Services Tax Network prioritises the protection of taxpayer privacy and security.
5. Contribution to a Transparent Tax System
Goods and Services Tax Network aims to assist tax authorities in developing a transparent tax system. This involves providing relevant insights from taxpayers and contributing to a more accountable and transparent taxation process.
6. Uniform Registration Process for all GST Types
To simplify administrative processes, Goods and Services Tax Network strives to offer a uniform registration process applicable to all types of Goods and Services Tax.
7. Provision of Relevant Insights to Authorities
One of the goals is to provide authorities with valuable insights derived from taxpayer data, contributing to informed decision-making and policy formulation.
8. Delivery of Effective IT-Based Services
Goods and Services Tax Network is committed to delivering effective services based on robust IT infrastructure, ensuring seamless and efficient tax payment processes.
9. Creation of a Helpful Taxpayer Profile
Another objective is the creation of a helpful taxpayer profile, facilitating a user-friendly experience and promoting compliance with GST regulations.
Final Thoughts
The Goods and Services Tax Network is very essential in enhancing the efficiency of our country’s tax system. Acting as a centralised platform, GSTN facilitates seamless filing of returns and payment processes for all states. Its functions extend beyond providing IT infrastructure to include linking stakeholders, ensuring taxpayer privacy, and contributing to a transparent tax system. By promoting uniform registration processes and delivering valuable insights to authorities, Goods and Services Tax Network establishes a robust ecosystem for effective tax management. With a focus on user convenience and data security, GSTN stands as a key enabler in the evolution of India’s taxation framework.
