GSTN – Goods and Service Tax Network

GSTN Full Form

The Goods and Service Tax Network (GSTN), a nonprofit, non-governmental organisation, runs the GST portal’s whole IT infrastructure.

What is GSTN?

The Goods and Services Tax Network (GSTN), a nonprofit organisation that is not affiliated with any government, will offer shared IT infrastructure and services to the federal and state governments, as well as to taxpayers and other stakeholders.

Latest information and notifications about GSTN

New features for taxpayers to use on the GST portal have been published by the GSTN and are available on the GST platform. The features are available for several modules, such as Registration, Advance Ruling, Returns, Payment, Refund, and other categories.

Based on the GST Council’s recommendations, the Finance Bill 2022 proposes some revisions to the CGST Act. The primary goal of these changes is to integrate the Act’s legislative requirements with the current GSTR-1/GSTR-3B return filing system.

The government offers a dedicated Youtube channel to assist taxpayers with GSTN updates to know more about the features and benefits.

Structure of GSTN

In contrast to existing tax networks, the Goods and Services Tax Network seeks to offer a uniform interface for taxpayers and governments and shared, standardised technical infrastructure for the federal and state governments.

• According to its organisational structure, the government controls 49% of GSTN, while private companies hold 51% of the company.
• The authorised share capital of GSTN is Rs. 10 crores, of which 49% is shared equally by the Central and various state governments, while commercial banks share the remaining 51%.
• Additionally, Infosys Technologies Ltd. approved a one-time grant of Rs. 315 crores for developing its advanced backend.

Features of GSTN

The GSTN is a standardised interface for taxpayers and a shared and common IT infrastructure between the Centre and States.

Below are some features of GSTN:

• Oversees enormous operations

The GSTN can handle many complex transactions, such as interstate GST adjustment (IGST). This is made possible by the GSTN’s dependable and secure IT infrastructure, which allows for a quick flow of information between the taxpayers and the GSTN.

• Reliable NIU: National Information Utility

The GSTN is in charge of supplying a solid and secure IT infrastructure that permits the transmission of verifiable information.

• Protection of information:

The central government is primarily responsible for maintaining the security and confidentiality of GSTN data. It will oversee the board’s makeup, the shareholders’ agreement, the dispute-resolution procedures, and any agreements reached between the network and the state governments.

• Financial Support:

The federal and state governments will each contribute equally to the costs associated with utility, infrastructure, and other GSTN operations. The percentage of each state’s expenses to its total taxpayer population will be determined.

• Multiple Payment Options

Taxpayers may make payments through both online and offline methods through the GST Network:

• Online Payment:

For online transactions,  the taxpayer must make a payment by connecting into the website of the chosen agency bank and downloading a challan of the completed GST transaction.

• Offline Payment:

The “over the counter” option for GST payment is available at any designated agency bank.

Functions of GSTN

Every month, many invoices and tax returns are processed by the Goods and Services Network, which serves as a communication link between taxpayers and governments.

• Profile Analysis of the Taxpayer

When taxpayers request to register on GSTN, their information is carefully checked and sent to the relevant state and federal governments for approval.

• Enrollment

The Taxpayer receives a GSTIN and notifies the appropriate tax authorities once their profile has been checked and approved.

• Submitting returns

No matter the type of GST—State GST (SGST), IGST, or Central GST (CGST)—GSTN has a standardised, simple way of filing returns without burdening Taxpayers. The GSTN processes and sends the returns to the federal and state governments after filing them.

The GSTN also performs several additional activities, including the following:

• Calculating and Updating IGST
• Collecting information from Agency banks about tax payments
• Keeping the Input Tax Credit Calculator Up to Date
• Creating and delivering government MIS (Management Information and System) reports.

What services are provided by the GSTN portal?

The following services will be offered by GSTN via the Common GST Portal:

• Registration (including the migration of current taxpayers)
• Payment administration, including interaction with financial systems and payment gateways
• Processing and submission of returns
• ITC (Input Tax Credit) reversal and matching
• Settlement of IGST
• Account management, notifications, information, and status tracking for taxpayers
• Management of tax authority ledgers and accounts
• Computation of the settlement between the Centre and States (including the IGST Settlement); IGST clearing house
• MIS, which includes need-based information and business intelligence
• Processing and reconciliation of GST on import
• Integration with Customs’ EDI systems
• Maintenance of connections between the Common GST Portal and systems for collecting taxes
• Provide stakeholders with training
• Provide tax authorities with analytics and business intelligence
• Research and best practices should be studied.