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TMI BlogGSTN and Frontend Business Process on GST PortalX X X X Extracts X X X X X X X X Extracts X X X X ..... capital and O M cost of the IT Systems shall continue. Q 2. What was need to create GSTN? Ans. The GST System Project is a unique and complex IT initiative. Before GST, since, the Centre and State indirect tax administrations worked under different laws, regulations, procedures and formats, there IT infrastructure and systems were also independent of each other. Integrating them for GST implementation would have been complex since it would have required integrating the entire indirect tax ecosystem so as to bring all the tax administrations (Centre, State and Union Territories) to the same level of IT maturity with uniform formats and interfaces for taxpayers and other external stakeholders. Besides, GST being a destination based tax, the inter-state trade of goods and services (IGST) would have needed a robust settlement mechanism amongst the States and the Centre. Meeting these objectives were only possible only when there is a strong IT Infrastructure and Service back bone which would have enabled capturing, processing and exchange of information amongst the stakeholders (including taxpayers, States and Central Government, Bank and RBI). To achieve these objectives of es ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue of strategic control of Government over GSTN. The Group recommended that strategic control of the Government over the SPV should be ensured through measures such as composition of the Board of Directors (also referred to as the Board), mechanisms of Special Resolution and Shareholders Agreement, induction of Government officers on deputation, and agreements between GSTN SPV and the Government(s). Also, the said shareholding pattern ensured that the Centre individually and States collectively are the largest stakeholders at 24.5% each. In combination, the Government shareholding at 49% would far exceed that of any single private institution. EG also brought out the need to have technology specification to run this company so that there is 100 percent matching of returns. The business knowledge resides with the officials of Government of India and the States/Union Territories. However, the professionals with knowledge pertaining to technology will also be required as equally important stakeholders to run this company independently, on the lines of NSDL which is working professionally, as well as independently. EG also recommended a non-government company as that will have o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Government towards functioning of the SPV for a three-year period after incorporation. Considering the nature of function performed by GSTN, GST Council has taken a decision that GSTN be converted into a fully owned government Company. For this, the entire 51% equity holding held by the Non-Governmental Institutions in GSTN shall be acquired equally by the Centre and the States governments. Q 4. What is the equity structure and Revenue Modelof GSTN? Ans. (a) Equity Structure: - In compliance of the Cabinet decision, GST Network was registered as a not-for-profit, non-Government, private limited company under section 8 of the Companies Act, 1956 with the following equity structure: Central Govt 24.5% State Govts 24.5% HDFC 10% HDFC Bank 10 ICICI Bank 10% NSE Strategic Investment Co 10% LIC Housing Finance Ltd 11 The GSTN in its current form was created after taking approval of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he stake holders Q 6. What is the interface system between GSTN and the States/CBIC? Ans. It was decided that in the GST regime, while taxpayer facing core services of applying for registration, uploading of invoices, filing of return, making tax payments shall be hosted by GST System, all the statutory functions (such as approval of registration, assessment of return, conducting investigation and audit etc.) shall be conducted by the tax authorities of States and Central governments. Thus, it was decided that the Front-End (GST Portal services) shall be provided by GSTN and the Back-End modules shall be developed by states and Central Government themselves. However, 27 states (termed as Model-2 states) asked GSTN to develop their Back-End interface also. The CBIC and 9 states (Model 1) decided to develop and host the Back-End modules themselves. For Model 1 states/ CBIC full data (registration, return, payment etc.) submitted by taxpayers is being shared with them for information and analysis as deemed fit by them. Q 7. What is the role of GSTN in registration? Ans. The application for Registration is made Online on GST Portal. Some of the key data like PAN, Bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase/sales register data in GST compliant format, Integration of their Accounting Packages/ERP with GST System etc., various kind of dashboards to view Matched/Mismatched ITC claims, Tax liability, Filing status etc. As invoice level filing is required, so large organizations may require an automated way to interact with GST system as it may be practically impossible for them to upload large number of invoices through a web portal. So an eco- system is required, which can help such taxpayers in GST compliance. As Tax payer convenience will be the key to success of GST regime, this eco-system also provides tax payer options of using third party applications, which can provide different kind of interfaces on desktop/mobile for them to be GST compliant. All above reasons require an eco-system of third party service providers, who have access to GST System and capability to develop such applications. These service providers have been given a generic name, GST Suvidha Providers or GSP. Q 12. What is the role of GST Suvidha Providers (GSP)? Ans. GSP develops applications having features like return filing, reconciliation of purchase register data with auto populated data for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rough GST Portal managed by GSTN are: Application for registration as well as amendment in registration, cancellation of registration and profile management; Payment of taxes, including penalties, fines, interest, etc. (in terms of creation of Challan as payment will take place at bank s portal or inside a bank premises); Change of status of a taxpayer from normal to Compounding and vice-versa; Uploading of Invoice data filing of various statutory returns/Annual statements; Track status of return/tax ledger/cash ledger etc. using unique Application Reference Number (ARN) generated on GST Portal. File application for refund, appeal, advance ruling etc. Status review of return/tax ledger/cash ledger Generation of E-way bill Q 15. What is the role of tax officers from State and Central Govt in respect of the GST system being developed by GSTN? Ans. The officers use information/ application submitted by taxpayer on GST Portal for following statutory functions: Approval/rejection for enrollment/registration of taxpayers; Tax administration (Assessment / Audit/Refund / Appeal/ Investigation etc.); Business Analytics, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CBT s, Various User Manuals, FAQ s etc., have also be placed on GST Portal for education of the taxpayers. Apart from it, an interactive Self-Help Grievance Redressal Portal has been set up for the taxpayers for logging of their tickets ( https://selfservice.gstsystem.in/ ) or phone (01244688999). CBT, FAQ and User Manuals for enrolment process are readily available at https://www.gst.gov.in/help . GSTN conducts webinars on various topics related to GST Portal and same can be seen in GSTN you tube channel ( https://www.youtube.com/c/GoodsandServicesTaxNetwork ). Apart from sending bulk mails to the taxpayers regarding new functionalities and advisories, GSTN connects with the taxpayers and other stakeholders through its social media channel i.e facebook https://www.facebook.com/gstsystemsindia/ and twitter handle (@ask GSTech) https://www.facebook.com/gstsystemsindia/ and through regular updates on new functionalities /advisories and troubleshooting tips. Q 22. Does the return and registration data furnished by the taxpayers on the GST Common Portal remain Confidential? How does GSTN ensure the same? Ans. Yes, all steps are being taken by GSTN to ensure the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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