Goods and Services Tax Network (GSTN): The National Tax Grid

Minimizing Human intervention by optimal use of Information Technology, will result in reduction of errors. As a result it will plug the Tax Leakages. It will also put a check on the Rampant day to day Corruption and Harassment at various levels. The computation of figures; cross verification; back end checks of input tax credit documents; will be done at Real time. This will help to detect frauds and bogus bill entries. As a result, the revenues of the State as well as the Centre will steadily increase, resulting into bringing down of the Tax rates in future. With this in the background, Goods and Services Tax Network – GSTN is the SPV (special purpose vehicle) was setup by Government to ensure smooth implementation of the IT platform for GST law. The Company has been set up primarily to provide IT infrastructure and services to the Central and State Governments, taxpayers and other stakeholders for implementation of the Goods and Services Tax (GST). The first part of GSTN software is expected to be ready by the end of October 2016. GSTN will be generating ID numbers and passwords for all the existing 80 lakhs Tax Payers who are registered with State VAT or Central Excise or Service Tax much before the implementation of the new tax GST so as to enable the tax payers to familiarise with the IT platform GSTN.

GSTN is a section 25 Company which will run on a no profit -no loss principle. Recently there has been a resentment against the major private holding in the said company. The Centre and the States hold just 49 % thus raising genuine concerns. GSTN will be the single point IT platform where transactions and business data of 80 lakhs tax payers will be recorded. Details including, inputs, purchases, production, sales, services received; services provided; values; taxes; bank transactions; credit or debit card details etc will all be at one place -GSTN. The GST revenue will be deposited in the Government accounts. The States will be given their share in the GST collected. All the Banks, CGST officers; SGST officers, Anti Evasion and Intelligence Wings will have access to the said IT platform. The assessment, refund orders, show cause notices all will be generated from GSTN. Success of GST solely depends on the Successful implementation of GSTN. It’s the National Tax Grid in making.

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