GSTN: Goods and Services Tax Network, All Info
Get complete insight of GSTN, GSTN Current Structure : Goods and Services Tax Network share holders
Goods and Services Tax Network (GSTN) is responsible for managing the IT system concerning the GST Portal. It is a one-stop solution to upload their invoices, file returns, and avail tax benefits. It is a non-profit, non-government organization and is the database for the official GST Portal. The GSTN establishes a channel of communication and interaction between taxpayers, the central and various state governments, and other stakeholders.
Millions of the customers were registered on different tax platforms to a consolidated platform. For compliance and administrative purposes, the Goods and Services Tax Network (GSTN) has brought together those taxpayers.
GSTN allots a 15-digit Goods and Services Tax Identification Number to a registered business entity. GSTIN replaces the old Tax Identification Number (TIN) which respective states were allotting to businesses under Value-added Tax (VAT) registration.
GSTN Current Structure : Goods and Services Tax Network share holders
It acts as a uniform interface for the taxpayers and governments along with a shared, common technology infrastructure between the central and the state governments.
- 51% of GSTN’s stake is held by private entities (HDFC 10%, HDFC Bank 10%, ICICI Bank 10%, NSE Strategic Investment Co 10%, LIC Housing Finance Ltd 11%). The government owns the remaining 49% (Central Government 24.5% and State Governments and EC 24.5%).
- GSTN’s authorized share capital is Rs. 10 Crores, 49% of which is equally distributed between the Central (2.45 Cr.) and various state governments (2.45 Cr.). The remaining 51% is distributed between private banks. Which is like ((HDFC 1 Cr., HDFC Bank 1 Cr., ICICI Bank 1 Cr., NSE Strategic Investment Co 1 Cr., LIC Housing Finance Ltd 1.1 Cr.).
- Further, Infosys Technologies Ltd. sanctioned a non-recurring grant of Rs. 315 Crores for its sophisticated backend development.
Also read Everything about GST – Goods and Services Tax
GSTN Features (Goods and Services Tax Network)
You can see the features of the GST Network in the list below:
1. Ability to Manage Huge Operations
The GSTN can process a heavy volume of complex transactions. One of which is adjustment of inter-state GST (IGST). This is possible through its robust and secure IT infrastructure. The structure facilitates a swift exchange of data between the taxpayers and the Goods and Services Tax Network (GSTN).
2. Trusted National Information Utility (NIU)
The GSTN is tagged as the most reliable NIU. GSTIN is in charge of providing a secure and strong IT infrastructure that enables a verifiable information exchange.
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3. GSTN Ownership
The government of India (49%) and private entities (51%) hold the ownership of Goods and Services Tax Network (GSTN). Private entities comprise banks and financial institutions as discussed above in this article.
4. Various Payment Modes
The GST Network allows payment by taxpayers through both online and offline modes. In Online Mode, the Reserve Bank of India (RBI) has authorized some banks to collect GST payments. These banks are known as the Agency banks. The taxpayer can make a payment by logging onto the selected agency bank’s web portal. The customer needs to download challan of the GST transaction done. Whereas in Offline Mode, GST payments online are available through the ‘over the counter option at any agency bank. The agency bank shall further communicate the payment details to the RBI and the GSTN for its updation.
5. Confidentiality of the taxpayers’ information
The central government is responsible majorly to preserve the security and confidentiality of GSTN data. It manages the board’s composition, shareholder’s agreement, resolution mechanisms, and any agreements forged between the state governments and the network.
6. Expense Management
The central and state governments equally share and pay the expenses. Each state’s share of expenses shall be calculated in proportion to the number of taxpayers in the state.
Also Read All about GST Identification Number: GSTIN and GST Certificate
GSTN Functions
The Goods and Services Network, acts as a communication channel between the taxpayers and the governments. GSTN processes a huge volume of invoices and taxpayer returns every month. We have explained details of main functions of the GST Network or GSTN in below para.
- Verification of Taxpayer’s Profile: On registration of a taxpayer on GSTN, all details are thoroughly verified and passed on to the central and the respective state government for approval.
- Handling Registration: GST allots GSTIN after the Taxpayer’s profile is verified and approved. GSTN notifies the respective tax authorities about it.
- Handling Invoice: This is a key function of the GSTN to cull out any discrepancies between the purchase invoices and sales invoices. The GSTN resolves the discrepancies so that the Taxpayer can avail of the Input Tax Credit (ITC) benefits.
- Filing Returns: GSTN has a unified return filing method for GST, including State GST (SGST), IGST, or Central GST (CGST). The GSTN processes and forwards the returns to the central government and state governments.
- Other functions: Calculation and Adjustment of IGST, Collating Agency banks with tax payment data, Maintenance of Input Tax Credit Calculator, Generating and sending MIS (Management Information and System) reports to the governments.
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