Goods and Services Tax network: How Infosys will ensure smooth implementation of GST

 BT Online        Last Updated: August 4, 2016  | 08:45 IST
Goods and Services Tax network: How Infosys will ensure smooth implementation of GST
[Photo: Reuters]

As Rajya Sabha nods on the Goods and Services Tax (GST) Bill, the implementation of India's biggest tax reform since independence has just got a step closer. Infosys, country's second largest IT firm, has prepared a software to enable the traders, manufacturers and service providers to register with the government with a GST identity code.

ALSO READ: GST will see better tax compliance on robust IT infra: Govt

Infosys had bagged a Rs 1,320-crore contract to build GST Network (GSTN) system last year in September, beating four other IT companies - TCS, Wipro, Tech Mahindra and Microsoft.

Below is all that you need to know about GSTN:

1) GSTN is a company formed to connect databases of states with the Centre and provide information technology (IT) infrastructure for seamless implementation of GST.

2) GSTN would help in PAN-based (Permanent Account Number-based) registration of traders, besides filing of tax returns and payment system.

3) Navin Kumar, Chairman of GST Network believes the system would be ready by February. "We would give Infosys the go-ahead for the procurement of hardware after Rajya Sabha clears the GST Bill. When that happens, installation and testing part would begin and by then parallely the software development would be completed," said Kumar.

4) The Centre and the states have agreed to equally share the costs incurred by GSTN. A sub-committee would decide on the sharing of the costs between the states.

How will the GSTN work

First of all, taxpayers will register themselves on the GST portal, then the information that they file will be sent to the tax authorities. As GST is a dual tax - the state GST and the Central GST - the application would be sent to both, the central government and the state government. After they approve the application, GST portal will generate their GSTIN (GST Identification Number) and thus they will become the registered taxpayers.

Youtube
  • Print

  • COMMENT
A    A   A
close