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What is GSTN?


What is GSTN? – An Overview

GSTN or Goods and Services Tax Network is the IT backbone of the GST regime. GSTN acts as a non-profit organisation incorporated as a Section 8 Company. GSTN aims at developing and maintaining a platform that provides access for all concerned parties, i.e., stakeholders, government, and taxpayers, to collaborate on a single portal for all GST related issues.

Who owns the GSTN?

The GSTN is owned by the Government and Private Players. The authorised capital of GSTN is Rs. 10 crore, in which the Central Government holds 24.5 percent of shares, while the State Government combined holds 24.5 percent stake. Rest of the shares of the GSTN are with private banking firms in the following pattern:

  • Central Government – 24.5%
  • State Governments – 24.5%
  • HDFC – 10%
  • HDFC Bank – 10%
  • ICICI Bank – 10%
  • NSE Strategic Investment Co. – 10%
  • LIC Housing Finance Ltd. – 11%

Major Function of GSTN

The following are major functions of the GSTN:

GST Registration

GST registration for taxpayers can be obtained through the GSTN. GST is common under Central and State GST. Hence, there is only one place for filing GST registration application, which is the GST Portal.

After submitting the application for GST registration on the GST Portal, the GSTN processes the validation of data such as PAN, DIN and Aadhaar. After completion of validation, the registration application the Portal shares the information to the respective Central and State Tax authorities. For clarifications, the processing officer shall communicate to the taxpayer through the GST Portal. Hence, the GSTN acts as a single point of contact and integrated platform for all GST registration related matters.

GST Return Filing

After GST registration, GSTN plays a major role in the processing of GST returns. Under GST, all taxpayers having GST registration must file GST returns as per due date applicable. Further taxpayers must upload and match all B2B invoices issued. Based on the B2B invoices uploaded for GST input tax credit, the taxpayer shall receive the counter-party automatically. Hence, GSTN manages a common portal for matching of invoice-level data filed as part of return by all taxpayers.

A similar facility is provided for all interstate supplies where goods or services will move from the state of origin to the state of consumption and so will the taxes. The claim of IGST and its utilization will be settled based on returns filed at the Common GST portal.

GST Payment Processing

The taxpayers shall make the GST payments only through the GSTN. To make a payment, the taxpayer must first create a GST payment challan. After creating the payment challan, the taxpayer can make the payment through online banking facility or through over the cash payment at an authorized bank. After completion of payment, the screen directs back to the GST portal from where the taxpayer can download the paid challan as generated by the GST Portal after receiving confirmation from the bank. The taxpayer may also choose to print the challan and present it to the bank.

In case the taxpayer chooses online payment, he/she will be taken to the bank website for completing payment. After completion of payment, the taxpayer will be redirected back to the GST portal from wherein the amount of payment will be credited to the electronic cash ledger of the taxpayer.

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