The Goods and Services Tax Network (GSTN) is a unique and intricate IT enterprise that establishes a channel of communication and interaction between taxpayers, the central and various state governments, and other stakeholders. This single consolidated IT platform has given shape to the main objective of Goods and Services Tax (GST), i.e., One Nation, One Tax, One Market.
For compliance and administrative purposes, the GSTN has brought together millions of taxpayers who were earlier registered on different tax platforms under a consolidated umbrella. Consequently, any business entity registered on GSTN shall be allotted a 15-digit Goods and Services Tax Identification Number (GSTIN) to replace the old Tax Identification Number (TIN) allotted by respective states under Value-added Tax (VAT) registration.
The uniqueness of the Goods and Services Tax Network lies in its endeavor to act as a uniform interface for the taxpayers and governments along with a shared, common technology infrastructure between the central and the state governments.
Structurally, 51% of GSTN’s stake is held by private entities, and the government owns the remaining 49%.
GSTN’s authorized share capital is Rs. 10 Crores, 49% of which is equally distributed between the Central and various state governments, with the remaining 51% distributed between private banks.
Further, a non-recurring grant of Rs. 315 Crores was sanctioned for its sophisticated backend development by Infosys Technologies Ltd.
Shareholder |
Shareholding |
Central Government |
24.5% |
State Governments and EC |
24.5% |
HDFC |
10% |
HDFC Bank |
10% |
ICICI Bank |
10% |
NSE Strategic Investment Co |
10% |
LIC Housing Finance Ltd |
11% |
Total |
100% |
You can follow the steps below to apply for GSTIN via the GST portal:
Step 1: Navigate to the online portal of GST.
Step 2: Click on the ‘New Registration’ button.
Step 3: Fill in all the essential details such as name, phone number, and email address.
Step 4: Verify your mobile number and email by entering the OTP.
Step 5: Once done, you will receive an Application Reference Number (ARN)
Step 6: Using the ARN, log in to your application form and enter additional details.
Step 7: Upload the essential documents.
Step 8: Submit your application using Aadhaar OTP or DSC.
However, you can also apply for GSTIN offline from GST Seva Kendra if you are not much comfortable with online procedures.
Collating Agency banks with tax payment data
Maintenance of Input Tax Credit Calculator
Generating and sending MIS (Management Information and System) reports to the governments
The advent of the GST Network has undoubtedly simplified the complex indirect taxation system by consolidating and replacing all indirect taxes under a single roof. GSTN’s superior IT interface has also eased the burden on business entities by providing a quick, one-stop solution to upload their invoices, file returns, and avail tax benefits.
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When a taxpayer applies to register for GST, all of their specific information is checked before being submitted for approval to the tax authorities of the federal and state governments. In addition to managing the basic tax filings and tax returns, GSTN also has the following additional duties related to managing taxation:
Calculation, followed by settlement of integrated GST (or IGST)
Integration of banking network to tax payment details
Management of Input Tax Credit computation engine
Submission of the MIS reports to the government
GSTIN, or Goods and Services Tax Identification Number, is a unique 15-digit number that is assigned to every taxpayer registered under GST. The first 2 digit represents the state code, and the next 10 digit is the PAN number of the business. The 13th digit reflects the number of registrations under that PAN, the 14th digit is the alphabet ‘Z’, and the last digit is a check code.
The functions of GSTN are as follows:
Serves as a platform between the government and a taxpayer who wants to file GST under the new laws.
Acts as a common platform for filing SGST, CGST, and IGST and processes and forwards the returns to the respective tax authorities.
Fixes any mismatch between the purchase and the sales invoices so taxpayers can enjoy the benefits of Input Tax Credit.
GSTIN can bestow taxpayers with several remarkable benefits, such as:
Provides legal recognition to your business, in turn, attracting more customers.
Aids you in enjoying input credit on the input services and own purchases.
Gives you the scope to expand your business on e-commerce sites.
Ensures the availability of input credit on purchasing products from small businesses.
Allows interstate sales of goods, increasing your reach to probable customers.
Helps your business to get a good GST rating by ensuring that you strictly abide by all the rules of GST.
GSTN serves as a common platform which can process and forward the return to both state and central tax authorities. Additionally, you can file all types of GST via this platform, such as CGST, SGST and IGST. This has led to the elimination of the need to use different platforms.
The legal name or trade name of the registered person can be used to locate the GST number. You may also use your PAN to find your GST number.
Currently, the Central Government and the State Government each retain 24.5% of the equity shares while non-governmental entities hold the remaining 51%. Through a number of procedures, GSTN is strategically controlled by the Government.
Businesses must register for the Goods and Services Tax (GST) and get a special 15-digit Goods and Services Tax Identification Number (GSTIN). Any business that has a turnover of ₹40 Lakhs is required to register for GST, according to the Goods and Services Tax Act of 2017.
Yes. The GSTN is an online portal used by the Indian government to monitor all financial transactions. All GST-related services are tracked including registration, tax filing, and maintaining all tax information.