Registration opens for the Good and Services Tax Network (GSTN)
8 months ago SANJEET DWIVEDI 0
Registration for the Good and Services Tax Network (GSTN) has been started for taking part in coming Good and Services Tax (GST) one market structure. It is a very must process to conduct business in this very system.
As per ministry of finance, around 65 lakh registrations have been done so far.
It is a preparation for a new Single Nation Indirect Tax System that will be implemented from 1st July of 2017.
Why is there need to register on Good and Services Tax Network (GSTN)?
It is mandatory for indirect taxpayers to register Good and Services Tax Network (GSTN) as by registering, they will be able to file returns, make payments and fulfill other necessary requirements.
What is Good and Services Tax Network (GSTN)?
Goods and Services Tax Network (GSTN) is a private limited, not for profit( established through Section 8 of new companies Act,2013) and non-Government company. It was established on 28th of March, 2013.
It provides Information technology-based support infrastructure for implementation of the Goods and Services Tax (GST) regime. It is a shared and common information technology-based infrastructure between states and the center.
It also provides a uniform interface to taxpayers so that they fulfill their compliance requirements by filing returns and by making payments.
The equity structure of Good and Services Tax Network (GSTN) may be understood through the following image –
Why was there need of establishing Good and Services Tax Network (GSTN)?
Previously and currently, the Centre and State indirect tax regimes have different multiple tax laws, various different procedures for these laws, a different mode of regulations and various formats.
It resulted in various independent Information technology systems. Streamlining, integrating and processing for coherent data for theses independent systems to support Good and Services Tax(GST) implementation was Hercule’s complex and impossible task.
GST regime needed a uniform interface, a uniform law, a uniform format, a robust settlement mechanism among states and the center and a common & shared IT infrastructure between states and the center.
This type of need may be addressed through Good and Services Tax Network (GSTN) as it will provide strong IT Infrastructure and Service backbone which enables capture, processing and exchange of information amongst the stakeholders (including taxpayers, States and Central Governments, Accounting Offices, Banks and RBI).