TaxTMI 
TaxTMI 
GSTN and Frontend Business Process on GST Portal
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.... 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 establishing a uniform ....
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....vernment 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 operational freedom. These recommen....
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....r 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 the Empowered Committee of State Finance Ministers and Union Government after due deliberations over a long period of time. (b) Revenue Model: An amount of 315 Cr. was approved by the Govt. of India as Grants-in-Aid for initial setting up of the GSTN-SPV in 2013. During the period 31.03.2013 to 31.03.2016, an amount of ₹ 143.96 Crores was re....
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....all 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, Business Constitution, Aadhaar, CIN/DIN etc. (as applicable) is validated by the GST Portal online with the respective agency i.e. CBDT, UID, MCA etc., thereby ensuring minimum need for submission of documentation. The application data along with supporting scanned documents is being sent by GSTN to states/ Centre, which in turn processed that application and sends the query, if any, or approval or rejection intimation and digital....
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....n 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 acceptance/rejection/Modification, dashboards for taxpayers for quick monitoring of GST compliance activities. They may also provide role based access to divide various GST related activities like uploading invoice, filing returns etc., among different set of users inside a company (medium or large companies will need it), Applications for Tax Professional to manage their client's GST compliance activities, Integration of existing accounting packages/ERP with GST System, etc. Q 13. What are the benef....
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....edger 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, MIS and other statutory functions. Q 16. Can invoice data be uploaded on day to day basis? Ans. Yes, GST Portal will have functionality for taxpayers to upload invoice data on any time basis. Early upload of invoices by supplier taxpayer will help receiver taxpayer in early reconciliation of data in Invoices as well as help supplier taxpayer in avoiding last minute rush of uploading returns on the last day. Q 17. Does GSTN provide tools for uploading invoice data on GST portal? Ans. Yes, GSTN has provided spreadsheet like tools (such as Microsoft Excel),....