GST Network (GSTN)
&
Computerization Program
Preparing for GST
2nd June 2012
Sanjay Bhatia,
Commissioner of Sales Tax,
Maharashtra
GST
Current status
• Discussion paper on GST published in
November 2009
• Constitutional amendment bill being evaluated
by Standing Committee
• Computerization for GST in initial stages
through Empowered Group on IT
infrastructure (Nilekani Committee) and
Mission Mode Project.
2
Need for Computerization
• VAT experience
– VAT from 01.04.2005 without computerization
– Geographical administration changed to functional
administration
– Mandatory assessment replaced by assessment /
audit by exception
– Single point levy at first stage replaced by multi point
levy of tax thereby ITC claimed at each stage of sale
– Legacy of huge return default and incorrect and
incomplete filing of returns
3
Need for Computerization
• As quality data not available and automation was not in
place so implementation of VAT became very difficult.
Steps taken for computerization
– Correct and complete filing of returns ensured through
electronic filing
– ITC verification ensured through electronic cross checks using
electronic sales and purchase annexure
– CST form distribution mechanism established through online
electronic application
– E-payment of tax made mandatory
– Other e-services like e-registration ECS of refunds etc., started
– This computerization took 4 to 5 years after VAT introduction.
• VAT experience has taught that computerization is a must
for smooth implementation of GST
4
Computerization Initiatives
• At national level MMP and TINXSYS teams
conducted study on status of computerization
in different states
_ States at different level of computerization
– Maharashtra, TN, Kerala, AP, Karnataka and
Gujarat ahead of other States
• EC and GOI set up Empowered Group on IT
infrastructure(EGIT) for implementation of
computerization under the Chairmanship of
Mr. Nandan Nilekani
5
Empowered Group On IT
Members comprise of CBEC, Dept Of Revenue and
State Commissioners .
– Concept paper prepared on opening national level
common portal for e-services. Uniform systems of
Registration, Return filing and e-Payments to be
made available on this portal to all the States
– Cafeteria Model for automation i.e. other services to
be provided on payment basis through common
portal
• Computerization to be implemented through
national level GST Network (GSTN)
6
GSTN
Background
• Empowered Committee approved
creation of SPV, a non-Government
Company registered under the Companies
Act, 1956
• Key objective to provide shared
infrastructure and services to Centre and
State Governments
7
GSTN
• EC consensus on having Common Portal providing three core
services common across the country
– Dealer registration,
– Tax payments and
– Returns acceptance
• EGIT
– to evaluate suitable agency for incubating the National
Information Utility (NIU) for GST.
– National Securities Depository Limited (NSDL) was selected as
technology partner for incubating NIU to operate the IT backbone
for GST”.
• EGIT, CBEC, JWG of EC and NSDL have evolved a strategy for
implementing GSTN
8
GSTN
Area of Operation
Three options
a. Full Service Model-full range of GST services
b. Limited Service Model- Only Registration,
Returns and Payment on GSTN
c. Application Programming Interface (API)Operational flexibility to states but adhere to
common process
9
GSTN
Action Plan
• Build efficient and convenient interfaces with
tax payers tax administrators and other
stakeholders like banks, CBDT etc.
• Facilitate, implement and set standards for
providing common GST services to the centre
and state Government.
• Carry out research, study global best practices
and provide training to the stakeholders
10
GSTN
Functions
• Tax Payers management including account
management, notification, information, status tracking.
• Tax Authority Account / ledger Management
• Computation of settlement (including IGST settlement )
among centre and states
• Processing and reconciliation of import GST and
integration with Customs EDI systems
• MIS including need based information and business
intelligence
• Maintenance of interfaces between the common portal
and tax administration systems
11
GSTN
Functions
• GSTN portal will be launched to provide
information to taxpayers
• Updated information about Act, Rules,
Notifications, Circulars, procedures would be
available
• Portal to be integrated with automation systems
of all states
12
GSTN
•
•
•
•
Present Status
Central Portal under development by NSDL
Online Registration application ready
Eleven states identified for pilot project.
States in the process of modifying their
applications in line with GST procedures.
• UAT set up being prepared.
- Following options being explored• Shared UAT set up by NSDL
• Cloud services by BSNL
GSTN to be operational by August 2012
13
GSTN
• Process of actual setting up of GSTN is on
• GSTN to first handle:– 360° Pilot Project of Maharashtra & its expansion
to other states.
– TINXSYS
– Management of Pilot Project of 11 states.
14
Scope of Work
• Development of Registration Module and
migration of dealer registration data
• Development of Return Filing and processing
including ITC matching
• Development of payment Module
• Development of IGST settlement Module
• Providing MIS
15
Way forward – for Pilot
•
•
•
•
•
•
•
•
•
•
PAN Updation by States / UTs
States / UTs to estimate efforts for modification to existing VAT systems
Setting up of Test Set-Up by States / UTs
Modify the State /UTs VAT System
Establish interface with the common Portal
Invite Dealers / Vendors for testing the modules
Banks to make necessary system changes to CBS
Full round of testing by all entities
All 35 States / UTs sensitized regarding GST Pilot and related activities
Existing dealer data received from 33 states / UTs /Centre analyzed and
shared ( 2 UTs have no dealers)
16
Challenges in GSTN
• Finalization of common Registration,
Return & Payment format.
• Setting up of GSTN
• IGST settlement
• Getting all PANs
• Handling of legacy data
• Passwords for 60 Lac dealers
• Interface with state’s existing systems.
17
Challenges/Issues in GST
•
•
•
•
•
Handling of issues of administration (Dual Control)
Interstate transactions – whether IGST?
Interstate transactions - Settlement mechanism
RNR ( Revenue Neutral Rate) issues.
Differential thresholds
18
19
Registration Process
Features
• On line registration
• Single application – Centre, State & across the
States
• Mandatory PAN
• No physical record
• Defined uniform process
• Status tracking system
• Time bound registration
• Online amendment
• Possibility of ‘No registration certificate’
– status check online
20
Returns Process
Features
• Common portal to accept return
• Mandatory e-filing and e-payment
• Single return in each State for Centre, State & all
Acts
• Returns along with annexure containing salepurchase details
• Help available for e-filing
• Revision of returns
• Annual audit report instead annual return
21