The Goods and Services Tax was launched by the government in 2016. GST is supposed to subsume most of the indirect taxes that were prevalent during the VAT era and provide a uniform tax regime across the country.
But how to achieve this? The government came up with the Goods and Services Tax Network (GSTN) which is the technology network to ensure that the transition to the new regime is smooth.
To ensure proper tax compliance, the first step that needs to be taken is calculating the right amount of GST. After this, the new tax regime required the firms and businesses to make sure that there were periodic updates/uploads of sales and purchase data with reconciliation for tax credits and payments. To bring about transparency and minimize tax evasion, there was also a need for reconciliation between supplier and recipient. Thus, tax technology came into picture.
The GSTN is a nonprofit non-government company that provides the shared It infrastructure and service to both central and state governments including tax payers and other stakeholders. It is the backbone of the GST framework. The GSTN provides the frontend services of registration, returns and payments to all taxpayers.
The GSTN is structured in such a manner so that it functions as a single repository of information by storing information from every invoice. Needless to say, a technology ecosystem was required to effectively handle the transfer and dissemination of information. The GSTN intends to fulfil this objective by utilizing a network of GSPs (GST Suvidha Provider) and ASPs (Application Service Provider). The function of GSPs is to act as channels that will help to transmit the information between the GSTN server and the ASPs and to also provide a secure network for it. The ASPs will have the responsibility of performing all the activities that are required to ensure a smooth monthly return filing.
Do Follow Link for More Details: encomply
