Introduction of Goods and Services Tax (GST) in India is perceived to be the most ambitious initiative in the arena of indirect tax reform. It would change the Indian tax structure and pave the way for modernization of tax administration. For reason of simplicity for the taxpayer and ease of administration, it becomes necessary to develop a centralized system with common database for Central and State Governments.
The government have come up with an organization called Goods and Services Tax Network (GSTN) with the sole object of providing IT infrastructure and services to the Central and State Governments, tax payers and other stakeholders for implementation of the Goods and Services Tax. This network ensure smooth implementation of the IT platform with a common PAN – based taxpayer ID , a common return and a common challan.
Brief detail about GSTN are :
- The idea for enabling GST under IT plan was presented to Government of India and the empowered committee of state finance ministers under the chairmanship of Dr. Asim Dasgupta on July 21,2010.
- Goods and Services Tax Network (GSTN)is a Section 25 (not for profit), non-Government, private limited company
- It was incorporated on March 28, 2013
- Registered Office is situated at Room No 255, North Block, New Delhi 110001
- The authorized Capital of the company is Rs. 10,00,00,000 (Rupees ten crore only)
- Shareholders of GSTN are:
Name of Shareholders % of Holdings
A. Government Holding:
– Central Government – 24.5%
– State Governments & 2 UTs & EC Collectively – 24.5% 49 %
B. Non-Government Holding:
– LIC Housing Finance Ltd – 11%
– ICICI Bank Ltd – 10%
– HDFC Ltd – 10%
– HDFC Bank Ltd – 10%
– NSE Strategic Investment Corporation Ltd – 10% 51%
The GST System seeks to establish an IT infrastructure with a standard interface for the taxpayer (for the core services of taxpayer registration, filing of return and payment of tax) and a common and shared IT infrastructure between the Central Govt. and State Govts., along with other bodies of Government of India e.g. RBI and Central Government Tax authorities.
Solution Architecture has been designed to meet the goals of GSTN. GST portal operated by GSTN will be the fastest and most effective. For the purpose of simplicity for taxpayer, uniformity of tax administration, it is also proposed to have digitization of all documents and automation of related processes. Hence it is necessary to have-
- Common PAN based registration (State as well as Centre)
- Common standardized return for all taxes (with different account heads for CGST, SGST and IGST)
- Common standardized challan for all taxes (with different account heads for CGST, SGST and IGST)
Current Status of GSTN implementation
The Ministry of Finance, with the concurrence of the Empowered Committee of State Finance Ministers, has set up an Empowered Group on IT Infrastructure for GST with, inter alia, the mandate of approving the Solution architecture of the Common GST portal to be set up, Suggesting the modalities for setting up of a National Information Utility (NIU / SPV) and evaluating the suitability of the existing NIUs namely NSDL & NPCL for incubating the NIU/SPV for GST portal.
The ‘Empowered Group on IT Infrastructure for GST’ in its first meeting evaluated the feasibility of incubating the NIU, called GSTN, in NSDL and came to the conclusion that NSDL is well suited for this purpose. The scope of the project and implementation strategy is being worked out with the NSDL.
On 21st April 2015, the GSTN has issued REQUEST FOR PROPOSALS (RFP) For development of Gst System. Till Date following tech-giants has purchased the RFP:
- HCL TECH
- HCL INFOSYS
The last date of bids submission is extended to Monday, 6th July 2015.
The Government intention of implementing national wide GST from 1st April 2016 is largely depend upon development of GST Portal including Communication Network among stakeholders before such date. Hence GSTN should make all possible efforts to go live before 1st April 2016.
Author : onlineGST.in (@gstnewsupdate)