GSTN or GST Network

Table of Contents

The GSTN (Goods and Services Tax Network) is a non-profit, non-governmental organization. It will oversee the whole IT infrastructure of the GST portal, which serves as the central database for all things GST. The government will utilize this platform to track every financial activity and give taxpayers all services โ€“ from registration to tax filing and record keeping.


Structure of GSTN

The GSTN is owned 51 percent by private investors and the remainder by the government. The GSTN’s authorized capital is Rs 10 crore (US$1.6 million), with the Central and State governments each owning 49 percent of the shares and private banks owning the rest.

A non-recurring award of Rs 315 crores has also been authorized for the GSTN. Infosys was awarded the contract to create this massive technology backbone in September 2015. Mr. Navin Kumar, an Indian Administrative Service officer (1975 batch), chairs the GSTN. He has held many top roles with the governments of Bihar and India.

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Shareholder

Shareholding

Central Government

24.5%

State Governments & EC

24.5%

HDFC

10%

HDFC Bank

10%

ICICI Bank

10%

NSE Strategic Investment Co

10%

LIC Housing Finance Ltd

11%

Total

100%

Salient Features of the GSTN

Trusted National Information Utility

The GSTN is a dependable National Information Utility (NIU) that provides a dependable, efficient, and resilient IT backbone to ensure the seamless operation of GST in India.


Handles complex transactions

The Goods and Services Tax (GST) is a destination-based tax. Given the vast amount of transactions throughout India, the adjustment of IGST (for inter-state commerce) at the government level (Centre & various states) would be exceedingly difficult. Only when there is a robust IT infrastructure and service backbone that gathers, processes, and exchanges information will a speedy settlement mechanism between the states and the center be conceivable.


All information will be secure

The government will maintain strategic control over the GSTN in order to keep all taxpayers’ information safe and secure. The Central Government will have control over the composition of the Board, mechanisms of special resolution and shareholders agreement, and agreements between the GSTN and other state governments. Furthermore, the ownership arrangement is such that the government owns 49 percent of the company, significantly more than anyone private entity.


Expenses will be shared

The Central Government and the State Governments shall pay the user fees in equal proportion (50:50) on behalf of all users. The state component will subsequently be allocated to individual states in proportion to the number of taxpayers in each state.

Volume of expenses

Type of expenses

Maximum expenses

IT system designed by Infosys

2nd part

Fraud Analytics Tools, security audit, and other security functions(will be outsourced based on tender)

3rd part

Operating expenses such as salary, rent, office expenses, internal IT facilities

GSTN GST network

Functions of GSTN

GSTN serves as the foundation for the common portal, which serves as the interaction between taxpayers and the government. From registration through return filing, the complete GST procedure is done online. It must accommodate around 3 billion invoices every month, as well as the following return submission of 65 to 70 lakh individuals.

The GSTN will deal with:

  • Invoices
  • Various returns
  • Registrations
  • Payments & Refunds


Suggestions

Check out: GSTIN, GST Invoice, Income Tax Guide 2022, GST rule for SME etc.

Swipe is a free GST billing software, that helps you track your sales, purchases & estimates in real-time. With Swipe, you can easily manage your inventory, file GST returns, and create & share professional invoices.

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