GSTN - Role and Functions

The launch of GST in India is a landmark event which intends to change the entire taxation system in the country. However, the launch of this system requires mega infrastructural support, including IT facilities, administrative backup and institutional setup. Hence the government launched the GSTN. GSTN stands for Goods and Services Tax Network. It is a not for profit

section 8 company, established primarily to assist the rollout and implementation of GST and to act as the nodal agency to assist in terms of IT infrastructure and services to the Central, State Governments, taxpayers and general public. In essence, it will act as a common interface between the government, taxpayers, accounting authorities and bank.

Management and Shareholding

The administrative and strategic control of the GSTN will lie with the government as the central and the state governments together have seven members in the 14-member GSTN board. Three members will be private shareholders. The rest will be independent members; The CEO will be responsible for its overall functioning, and he or she will be appointed by the board. The central government shall hold the majority of the stake in GSTN (24.5%) whereas all state governments together shall hold another 24.5% of the stake. Private financial institutions like ICICI, HDFC etc. will collectively hold rest of the 51% of the stake in the company.

Know more about the GST Council.

Functions of GSTN

Facilitate registration
Computation of IGST and settlement
File tax returns and submit to central and state authorities
Integrate banking network with tax payment details
Analyse tax payer's profile
Manage computation engine of input tax credit
Submit MIS reports to governments

GSTN shall assist in the 4 phases mentioned below:

S.No.	Phase No.	Assistance for
1	Phase 1	GST Registration, Returns or Payments
2	Phase 2	Review of Pilot and Project development of NSDL
3	Phase 3	GST planning and implementation
4	Phase 4	GST solution development

IT Infrastructure

The primary role of GSTN as a back-office infrastructural support system is to provide a strong IT infrastructure to the state and central governments, stakeholders, taxpayers etc. for the execution of GST. Integration of the new portal with the existing IT systems is of primary importance. A common GST portal is being developed by the GSTN for applications for registrations, payment of taxes, MIS reports, settlement of dues etc. Currently, the state and central tax administration systems are working as separate modules, and hence it is imperative that they are integrated to ensure seamless functioning. The common GST portal will be integrated with the existing administration systems and help build interfaces for taxpayers. This common portal will function as the front-end of the overall GST IT system. Back end modules like registration approval, assessment, audit, refund, appeal, adjudication etc. for 19 states (Model 2 states) will be developed by GSTN. The Central Board of Excise and Customs and State Tax Departments of 15 states (Model 1 states) will develop their own GST back end systems. The developers shall complete testing the front and back end systems well in advance to ensure a smooth transition. Know more about the process of

becoming a GST Suvidha Provider and accessing the GSTN.

Back to Learn

Frequently Asked Questions

Common questions about GSTN Role and Functions in India.

The primary role of GSTN is to provide a robust IT infrastructure and services to the Central and State Governments, taxpayers, and the general public to facilitate the implementation and rollout of the Goods and Services Tax (GST) in India. It will act as a common interface between the government, taxpayers, accounting authorities, and banks.

GSTN is a not-for-profit Section 8 company. The administrative and strategic control of GSTN lies with the government, as the Central and State Governments together have seven members in the 14-member GSTN board. The Central Government holds the majority stake of 24.5%, while all State Governments collectively hold another 24.5%. Private financial institutions hold the remaining 51% stake.

GSTN's key functions include facilitating GST registration, computing IGST and settlement, filing tax returns and submitting them to Central and State authorities, integrating banking networks with tax payment details, analyzing taxpayer profiles, managing the computation engine for input tax credit, and submitting MIS reports to governments.

GSTN will assist in four phases: Phase 1 - GST Registration, Returns, or Payments; Phase 2 - Review of Pilot and Project development of NSDL; Phase 3 - GST planning and implementation; and Phase 4 - GST solution development.

The common GST portal being developed by GSTN will serve as the front-end of the overall GST IT system. It will be integrated with existing tax administration systems and help build interfaces for taxpayers. This portal will facilitate applications for registrations, payment of taxes, MIS reports, settlement of dues, and more.

GSTN will integrate the new GST portal with the existing IT systems of the Central and State tax administrations. This integration is crucial to ensure seamless functioning and data exchange between the new and existing systems.

GSTN will develop back-end modules like registration approval, assessment, audit, refund, appeal, and adjudication for 19 states (Model 2 states). The Central Board of Excise and Customs and State Tax Departments of 15 states (Model 1 states) will develop their own GST back-end systems.

To ensure a smooth transition to the GST regime, it is crucial that the developers complete testing the front-end and back-end systems well in advance. Thorough testing will help identify and resolve any issues or glitches before the actual implementation.

Private financial institutions like ICICI, HDFC, etc., collectively hold 51% of the stake in GSTN. Their involvement is likely to bring in private sector expertise and efficiency in the functioning of GSTN.

GSTN will serve as a common interface between taxpayers and the GST system. It will enable taxpayers to register for GST, file tax returns, make payments, and access various services through the common GST portal, thereby facilitating their interaction with the new tax regime.