GST NETWORK IN Goods and Services Taxptx

GST Network

1. GST NETWORK (GSTN)

2. Goods and Services T ax N etwork (GSTN) has built indirect taxation platform for GST to help taxpayers in I ndia to prepare, file returns, make payments of indirect tax liabilities and do other compliances. It provides IT infrastructure and services to the central and state governments, taxpayers and other stakeholders for implementation of the goods and services tax (GST) in India.

3. The GST system project is a unique and complex IT initiative as it is established for the first time as a uniform interface for the taxpayer under indirect taxes through a common and shared IT infrastructure between the C entre and States. The C entre and State indirect tax administrations which used to work under different laws, regulations, procedures and formats and consequently the IT systems worked as independent sites, were integrated into one system with uniform formats and interfaces for taxpayers and other external stakeholders. GSTN provides a strong IT infrastructure and service back bone which enables capture, processing and exchange of information amongst the stakeholders (including taxpayers, states and central governments, accounting offices, banks and RBI).

4. GSTN DATA

5. GOODS AND SERVICE TAX (GST) Goods and service tax (GST) was the largest indirect tax reform in the history of India. The reform mandated integration of entire nation’s diverse tax portfolio into a single taxation system. This brought upon a massive complexity in developing an IT platform, to handle not only the diverse tax systems of 36 states/union territories & union government, but also needed providing a single interface for more than a crore taxpayers’ for their GST compliance functions. Goods and services tax network (GSTN) was entrusted to build such a platform to service the need of diverse set of stakeholders. The responsibilities include and not limited to the following: GST system application design, development and operation Taxpayer migration from erstwhile regime to GST regime IT infrastructure procurement, commissioning with state-of-an-art security apparatus

6. Systemic resilience against failures and disaster recovery mechanism Helpdesk setup and operations Training and capacity building GST eco-system creation and management ( gsps ) Backend system for 27 states/ uts for assessments, appeal etc. GST was successfully rolled out on 1st of july , 2017.

7. E-WAY BILL Overview E-way bill is an electronic document generated on the e-way bill portal evidencing movement of goods. It has two components-part A comprising of details of GSTIN of recipient, place of delivery (PIN code), invoice or challan number and date, value of goods, HSN code, transport document number (goods receipt number or railway receipt number or airway bill number or bill of lading number) and reasons for transportation; and part B comprising of transporter details (vehicle number). As per rule 138 of the CGST rules, 2017, every registered person who causes movement of goods (which may not necessarily be on account of supply) of consignment value more than rs . 50000/- is required to furnish above mentioned information in part A of e-way bill. The part B containing transport details helps in generation of e-waybill.

8. E-WAY BILL Who should generate the e-way bill and why? E-way bill is to be generated by the consignor or consignee himself if the transportation is being done in own/hired conveyance or by railways by air or by vessel. If the goods are handed over to a transporter for transportation by road, e-way bill is to be generated by the transporter. Where neither the consignor nor consignee generates the e-way bill and the value of goods is more than rs.50,000/- it shall be the responsibility of the transporter to generate it. Further, it has been provided that where goods are sent by a principal located in one state to a job worker located in any other state, the e-way bill shall be generated by the principal irrespective of the value of the consignment. Also, where handicraft goods are transported from one state to another by a person who has been exempted from the requirement of obtaining registration, the e-way bill shall be generated by the said person irrespective of the value of the consignment.

9. E-INVOICE Background The GST council, in its 37th meeting on 20th september 2019, has recommended introduction of electronic invoice (‘e-invoice’) in GST in a phased manner. Gst e-invoice system is a path-breaking initiative which is going to revolutionize the way businesses interact with each other. It will be yet another milestone in india’s journey in enhancing ease of doing business. ‘E-invoicing’ essentially involves reporting details of specified gst documents to a government-notified portal and obtaining a reference number. E-invoicing has many advantages for businesses such as  standardisation , inter-operability, auto-population of invoice details into gst return and other forms (like e-way bill), reduction in processing costs, reduction in disputes, improvement in payment cycles and thereby improving overall business efficiency. Huge advancements in technology sophistication, increased penetration of internet along with availability of computer systems at reasonable cost has made ‘e-invoice’, a popular choice worldwide.

10. TINXSYS Overview Tax Information Exchange System (TINXSYS) Is A Centralized System Facilitating Information Exchange Among Commercial Tax Departments ( Ctds ) Of All States For Better Administration Of Inter-state Trade. In Order To Facilitate Tracking Of Inter-state Trade And Gather Meaningful Business Intelligence On Trends In Inter-state Trade, The Empowered Committee Of State Finance Ministers ( Ec ), In 2004, Established Tax Information Exchange System ( Tinxsys ), Which Is A Common Technology Platform Connecting The Systems Of Commercial Tax Departments ( Ctds ) Of 34 States And Union Territories ( Uts ) Of India, Excluding Andaman & Nicobar And Lakshadweep. Tinxsys Is The Repository Of Information Pertaining To Dealers In Various States, Registered Under The Central Sales Tax ( Cst ) Act. Dealers Can Use TINXSYS To Verify The Counter Party Dealer In Any Other State. Apart From Dealer Verification, Commercial Tax Department Officials Can Use Tinxsys For Verification Of Statutory Forms Issued By Various State Commercial Tax Departments, Submitted By The Dealers In Support Of Their Claim For Concessions. Tinxsys Also Provides Management Information System (Mis) And Business Intelligence (Bi) Reports For Monitoring Of Inter-state Trade/Movement By Commercial Tax Departments And Empowered Committee Of State Finance Ministers ( Ec ).

11. Invoice Incentivisation Overview Mera Bill Mera Adhikaar  Is Conceptualised As Scheme Which Incentivises Citizens & Consumers To Ask For Genuine Invoices From The Seller When Making Business To Consumer (B2C) Purchase Of Goods Or Services, Which Are Under The Purview Of Goods And Services Tax. This Would Serve The Objective Of Encouraging Tax Compliant Behaviour , In The Business To Consumer (B2C) Stage Of The Transactions, By The Consumers & Business Across India. Gstn , With It’s Partner For This Application (M/S E-connect Solutions Pvt. Ltd.), Is Developing A Technology Platform Which Will Enable Citizens To Register Themselves And Upload Invoices On A User Friendly Mobile Application And Portal. Robust Technology Will Allow This Mobile Application & Portal To Automatically Read The Key Details From Printed Invoices, Like GSTIN, Invoice Number, Amount Paid & Tax Amount.

12. Invoice Incentivisation Overview At The End Of A Month, Few Lucky Invoices Would Be Identified By A Process Of Draw Of Lots, And Given Reward As An Incentive Of Observing Tax Compliant Behaviour . The Draw Of Lots Will Be Conducted By Another Government Agency. Since The Draw Of Lots Would Be Conducted On Individual Invoices, Every Invoice Could Be A Potential Future Reward At The Time Of Upload. Thus, Uploading More Invoices In A Month Would Increase A Consumer’s Chance Of Winning The Reward. Consequently, Citizens Would Be Incentivised To Report Maximum Number Of Transactions On This System. The System Would Also Facilitate Verification Of Winning Invoices Before Disbursal Of Reward, To Ensure That Only Genuine Invoices Are Given The Reward. This Scheme Would Serve Multiple Objectives Of Incentivising And Rewarding Compliant Behaviour By The Consumers, Encouraging Tax Compliant Businesses, Boosting Consumer Spending, And, Checking Tax Evasion.