GST ECOSYSTEM

GST ECOSYSTEM : THE IT BACKBONE

OF GST
I. The GST Eco – system project is a unique and complex IT
initiative . It is unique as it seeks , for the first time to
establish a uniform interface for the taxpayer and a common
and shared IT infrastructure between the center and states .
II. Integrating 36 disparate system, which were at different
levels of maturity would have been too complex. Besides
GST being a destination based tax, interstate trade of goods
and services {IGST} would need a robust settlement
mechanism amongst the states and the centre.
III. This is possible only when there is a strong IT infrastructure
and service backbone which enables capturing, processing
and exchange of information amongst the stakeholders.
PARTICIPANTS OF GST
ECOSYSTEM
The rollout of GST is collective effort of Central and State
Governments, the tax payers and the IT platform provides that
is GSTN, CBEC and state departments.
MAIN PATICIPANTS
I. Stakeholders
II. Central and State tax authorities

III. RBI

IV. Banks

V. Tax professionals [ tax return prepares, CA’s Tax

Advocates, STPs etc.]
VI. Financial service providing companies like ERP companies

VII. Tax accounting software providers

The tax payers should have choice to use third party
applications which can connect with GST Eco-System.
Majority of GST system functionalists related to taxpayers
GST may use GST APIS and enrich and enhance the
taxpayer experience .
THE BENEFITS OF API { Application Programme
interface } BASED INTEGATION ARE :
 Consumption across technologies and platforms
{ mobiles , tablets , desktops }
 Automated upload and download of data .

 Ability to adapt to changing taxation and others business

rules and end user usage models .
GSTIN { GOODS AND SERVICE TAX
NETWORK }
 Goods and services tax network {GSTIN } is a non –
government , private limited company . It was
incorporated on march 28 2013 , the government of India
holds 24.5% equity in GSTIN and all states of Indian
Union , including NCT of Delhi and Puducherry , and
the empowered committee of state finance ministers ,
together holds another 24.5% . Balance 51% equity is
with non government financial institution . The company
has been set up primarily to provide IT infrastructure and
services to the central and state government , tax payers
and others stakeholders for implementation of the good
and services tax .
 SCOPE
 To become a trusted national information utility which
provides reliable , efficient and robust IT backbone for
the smooth functioning of the Goods and Services Tax
regimen enabling economic agents to leverage the entire
nation as one market with minimal indirect tax
compliance cost .
OBJECTIVES
 Provides common and shared IT infrastructure and
services to the central and state government tax payers
and others stakeholders for implementation of the Goods
and Services .
 Provides common registration , returns and payers
services to the tax payers .
 Partners with other agencies for creating an efficient and
user friendly GST Eco system.
 Encourage and collaborates with GST suvidha providers
to all out GST application for providing simplified
services to the stakeholders .
 Carry out research , study best practices and provides
training and consultancy to the tax authorities and other
stakeholders .
 Provides efficient backend services to the tax department
of the central and states tax on request .
 Develop tax payers profiling utility for central and states
tax administration .
FEATURES OF GSTIN
 GSTIN has crafted a series of services and technological
tool to ensure that paying taxes and filling returns
becomes convenient for the last common denominator .
 Checking of claim of inputs tax credit is one of the
fundamentals pillars of GST , for which data of business
to business invoices have to the uploaded and matched .
 GSTIN has as already released template of excel sheet in
which taxpayers can keep the business data at invoice
level . The tool can pull 19000 . Line items from excel
sheet to generate 5 MB files.
 The tool can be used multiple times to upload data for
creating GSTR – 1.
 The common GST portal created and managed by
GSTIN will do this matching on the basis of invoice
level data filed as part of returns by all taxpayers .
 GSTIN will created and maintain the information in
IGST based on returns of taxpayers , the data will be
used for settlement of funds between Centre and states .
 Similar exercise will be done for interstates supplies
where goods or services will move from the states of
origin to the states of consumption and so will the taxes .
GST SUVIDHA PROVIDER
A GSP is considered as an enabler for the tax payer to
comply with the provisions of the GST law through its web
platform. GST suvidha provider is appointed by GSTN to
provide tax payers another innovative and convenient ways
for interacting with GSTN system.
A GSP would provide services of registration, uploading
invoice details and filing GST return. ZA GSP will provide
a portal for doing above tasks and may also provide API’s
for the same to be integrated into the tax payer application.
Tax payer would be connected to GST server through GSP
servers.
API APPLICATION
PROGRAMME INTERFACE

It takes the data request from the client machine and takes
it to the server, identifies the data from the server and bring
it back to the client machine.
SERVICES PROVIDED BY GSP’S
AND ASP’S
It is expected that the GSP shall provide the tax payers
with all services mentioned above in addition to
maintaining their individual business ledgers and other
value added services around the same. Another important
service expected from the GSP is automatic reconciliation
of purchase made and entered in purchase register and data
downloaded in the form of GSTR-2 from the GST portal.
The conceptual diagram depicting the same is given below.
GST ECO SYSTEM
WEB PORTAL

MOBILE APP

ACCOUNTING GSP/ GST GST

PACKAGE SERVER SERVER
• Registration
• Challan generation ERP
• Invoice uploading
• Return filling
CUSTOM APPS
• ledger
GST COMMON PORTAL
 Under section 2(26) of the CGST ACT 2017: “common
portal” means the common goods and services tax
electronic portal referred to in section 146”.
 Section 146 of the CGST ACT, 2017 states that : The
govt. on the recommendations of the GST council, may
notify the common goods and services tax electronic
portal for facilitating registration, payment of tax.
Furnishing of returns, computation and settlement of
integrated tax, electronic way bill and for carrying out
such other functions and for such other purposes as may
be prescribed.
GST COUNCIL
 GST council has already been explained in detail in chapter – process
of implementation of GST . Kindly this chapter for detailed
information on the GST council .
OTHER PARTICIPANTS
 CBEC Central board of excise & customs:

 Custodian of the center's fiscal destiny for indirect taxes .

 Roll in policy making : drafting of GST law , rules & procedures of

CGST , UTGST , & IGST law.
 Assessment , audit , anti evasion & enforcement under CGST &
IGST.
 Levy & collection of custom duties .

 Developing linkages of CBEC – GST system with GSTIN .

 Training of officials of both Centre and state.