Goods and Services Tax Network, a non-governmental entity in India, plays a crucial role in managing the intricate IT system of the Goods and Services Tax portal, aiming to streamline tax processes and establish a unified IT infrastructure for both the Central and State governments.
As a non-profit organization, GSTN serves as a dependable tech platform supporting the complex Goods and Services Tax (GST) landscape in the country. With a mandate to manage diverse transactions nationwide, GSTN becomes pivotal in resolving disputes between states and the central government, requiring a robust IT system for effective information handling.
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What are Goods and Services Tax Network?
Goods and Services Tax Network (GSTN) is an organization. It is a non-government firm that manages the IT system of the GST portal. The government uses this to track financial transactions. This non-profit organization provides every service to taxpayers from filing taxes to registration. Also helps in maintaining all the tax details.
What are the features of Goods and Services Tax Network?
GSTN makes tax processes easier and unifies IT systems for the Centre and States. However, it is a difficult IT zeal. The GSTN is a reliable tech platform supporting GST in India. It is a trusted National Information Utility, ensuring smooth operations. It acts as a pillar for the smooth functioning of GST.
- Complex Transaction Management:
- Managing Integrated Goods and Services Tax (IGST) between the central government and states will be very complicated due to the large number of transactions across India.
- Quickly resolving disputes between states and the central government requires a robust IT system to collect, process, and share information effectively.
- Ownership of GSTN:
- The 49% of ownership of GSTN is divided between the state and central government. The remaining 51% is owned by a private player. That 51% includes Financial Institutions and Banks.
- Information Protection:
- The government has control over GSTN. The central government controls the composition of the board and resolutions.
- It also manages the agreements between GSTN, shareholders, and other state governments. So, all the information about taxpayers is confidential and secure.
- Payments:
- On behalf of all users, both the State and Central Government pay the user charges. They divide and pay it in equal proportions (50:50). Later, according to the number of taxpayers, the state share will be divided into individual states.
- Payment method:
- Taxpayers can make payments with both online and offline mode.
- Online payment can be done through net banking. The RBI has allotted banks for the collection of payments. Certain authorities are responsible for the payments made in favor of GST. While paying, taxpayers have to select the list of bank agencies authorized by RBI to collect the tax.
- The offline mode of payment of the GST is via “over the counter”. The offline payment method is quite a simple process. Directly visit the respective banks and make a payment.
What is the structure of Goods and Services Tax Network?
In GSTN, the government owns about 49% of ownership. Similarly, the remaining 51% are owned by the private players. The GSTN has an official capital of INR 10 crore i.e. 1.6 million in US dollars. 49% is equally divided between the state and the central governments. And 51% is divided between private banks.
GSTN has approved a non-recurring grant of INR 315 crore. In September 2015, Infosys took responsibility for technological backend development. This is the most complex and vast development process.
| Share Holder | % of shareholding |
|---|---|
| Central Government | 24.5% |
| State Government | 24.5% |
| HDFC Bank | 10% |
| ICICI Bank | 10% |
| LIC Housing Finance Limited | 11% |
| NSE Strategic Investment Co. | 10% |
| HDFC | 10% |
| Total | 100% |
What are the functions of GSTN?
GSTN is the online link between businesses and the government. It facilitates communication for taxpayers. Per month, GSTN proceeds over 2 billion invoices. And processes the returns of 65 lakh counting and taxpayers.
The major responsibilities of GSTN are:
- Registration:
- The responsibility of registering the GST has been taken by GSTN. The online platform GSTN forms the connection between taxpayers who are looking for GST registration. GST can be registered by GSTN under the new taxation law and the government.
- Invoices:
- The GSTN counts the purchase invoices with the sale invoices. It fixes the mismatches to make taxpayers easily get the benefits of input tax credit.
- Return submission:
- GSTN provides services like forwarding the returns to central and state authorities of tax. It also processes the returns. All three types of GSTs have unified common return filings.
- Profile analysis of taxpayers:
- When taxpayers apply for GST registration, their details are verified. Then sent to both central and state tax authorities for approval.
Conclusion
In conclusion, the Goods and Services Tax Network is a non-governmental organization. It oversees the IT infrastructure of the GST portal. It facilitates taxpayer services such as registration and tax filing. Meanwhile, it also ensures secure transaction management.
With 49% government ownership, GSTN processes invoices. It manages returns, and verifies taxpayer details for registration, playing a vital role in the functioning of GST.
FAQs
1. What does GSTN stand for?
GSTN stands for Goods and Services Tax Network.
2. What does Goods and Services Tax Network mean?
The Goods and Services Tax Network (GSTN) is a non-governmental organization. It oversees the IT infrastructure of the GST portal.
3. What is the structure of GSTN?
In GSTN, the government owns about 49% of ownership. Similarly, the remaining 51% are owned by the private players.
4. Is GSTN a government company?
GSTN or Goods and Service Tax Network, operates as a non-governmental non-profit company, offering shared IT infrastructure and services to both the central and state governments, along with taxpayers and various stakeholders. GSTN is responsible for providing front-end services for registration, as well as handling returns and payments for all taxpayers.
