GST and Technology Long Answer Type Questions

Question 1.
Write short note on GSP Framework.
Answer:
Tax payer’s convenience will be a key in success of GST regime. The tax payer should have a choice to use third party applications which can provide varied interfaces on desktops, laptops and mobiles and can connect with GST System. The GSP developed apps will connect with the GST system via secure GST system APIs. Majority of GST system functionalities related to taxpayer’s GST compliance requirements shall be available to the GSP through APIs. GSPs may use GST APIs and enrich and enhance the tax payer’s experience. (The APIs of GST System are RESTful, json-based and stateless). GST System will not be available over the Internet for security reasons.

The production API end points Can only be consumed via MPLS lines. All APIs will be accessed over HTTPS protocol. The benefits of API based integration are:

Consumption across technologies and platforms (mobile, tablets, desktops, etc.) based on the individual requirements
Automated upload and download of data
Ability to adapt to changing taxation and other business rules and end user usage models.
Integration with customer software (ERP, Accounting systems) that tax payers and others are already using for their day to day activities.

Question 2.
What will be the role of GST Suvidha Providers?
Answer:
The GSP developed Apps will connect with the GST system via secure GST system APIs. Some of the functions of GSP are:

Development of various apps / interfaces for taxpayer, TRPs of GST system
Providing other value added services to the taxpayers

The GST Suvidha Providers (GSPs) are envisaged to provide innovative and convenient methods to taxpayers and other stakeholders in interacting with the GST Systems from registration of entity to uploading of invoice details to filing of returns. Thus there will be two sets of interactions, one between the App user and the GSP and the second between the GSP and the GST System.

Question 3.
What will be the role of taxpayers w.r.t GST Common Portal being developed and maintained by GSTN?
Answer:
The functions which will be performed by taxpayers through GSTN are:

Application for registration as well as amendment in registration, cancellation of registration and profile management.
Payment of taxes, including penalties, fines, interest, etc. (in terms of creation of Challan as payment will take place at bank’s portal or inside a bank premises).
Change of status of a taxpayer from normal to Compounding and vice-versa.
Uploading of Invoice data & filing of various statutory returns/Annual statements.
Track status of return/tax ledger/cash ledger etc. using unique Application Reference Number (ARN) generated on GST Portal.
File application for refund etc.
Status review of return/tax ledger/cash ledger

Question 4.
Write short notes on Relationship of GSTN with Tax Administrations,
Answer:
The common GST Portal developed by GSTN will function as the front-end of the overall GST IT eco-system. The IT systems of CBEC and State Tax Department will function as back-ends that would handle tax administration functions such as registration approval, assessment, audit, adjudication etc. Nine States and CBEC are developing their backend systems themselves.

GSTN is doing the backend for 20 States and 5 UTs. GSTN has been interacting with CBEC and States for ensuring mutual interaction between the front-end that would be operated by GSTN and the back-ends of the tax administrations. Till September 2016, ten workshops have been conducted with the States/CBEC. GSTN will undertake training of tax officials in GST IT system from December 2016 onwards. During the operation phase as well GSTN will continue the interaction with CBEC and states and extend help wherever necessary.

Question 5.
Explain the historical background of GSP.
Answer:
The Goods and Services Tax constitutional amendment having been promulgated by the Govt of India, the rollout of the GST Bill will be a collective effort of the Central and State Governments, the tax payers and the IT platform provider i.e. GSTN, CBEC and State Tax Departments. Besides these main participants there are going to be other stakeholders e.g. Central and States tax authorities, RBI, the Banks, the tax professionals (tax return preparers, Chartered Accountants, Tax Advocates, STPs etc.), financial services providing companies like ERP companies and Tax Accounting Software Providers etc.

The GST System is going to have a G2B portal for taxpayers to access the GST Systems, however, that would not be the only w,ay for interacting with the GST system as the taxpayer via his choice of third party applications, which will provide all user interfaces and convenience via desktop, mobile, other interfaces, will be able to interact with the GST system. The third party applications will connect with GST system via secure GST System APIs.

All such applications are, expected to be developed by third party service providers who have been given a generic name, GST Suvidha Provider or GSP. The GSPs are envisaged to provide innovative and convenient methods to taxpayers and other stakeholders in interacting with the GST Systems from registration of entity to uploading of invoice details to filing of returns. Thus there will be two sets of interactions, one between the App user and the GSP and the second between the GSP and the GST System. It is envisaged that App provider and GSP could be the same entity.

In the evolving environment of the new GST regime it is envisioned that the GST Suvidha Providers (GSP) concept is going to play a very important and strategic role. It is the endeavour of GSTN to build the GSP eco system, ensure its success by putting in place an open, transparent and participative framework for capable and motivated enterprises and entrepreneurs.

Question 6.
Explain the GST Compliance Requirement by the Taxpayer.
Answer:
The taxpayer under GST Regime will have to provide following information at regular intervals:

Invoice data upload (B2B and large value B2C)
Upload GSTR-1 (return containing supply data) which will be created based on invoice data and some other data provided by the taxpayer.
Download data on inward supplies (receipts or purchase) in the form of Draft GSTR-2 from GST Portal created by the Portal based on GSTR-1 filed by corresponding suppliers.
Do matching of purchases made and that downloaded from GST portal. Finalize the same based on his own purchase (inward supply data) and upload GSTR-2
File GSTR-3 created by GST Portal based on GSTR-l and 2 and other info and tax paid.

Similarly there are’other returns for other categories of taxpayers like casual taxpayer or composition taxpayers.

Question 7.
Explain the Design and Implementation Framework of GSP.
Answer:
Tax payer’s convenience will be a key in success of GST regime. The tax payer should have a choice to use third party applications which can provide varied interfaces on desktops, laptops and mobiles and can connect with GST System. The GSP developed apps will connect with the GST system via secure GST system APIs. Majority of GST system functionalities related to taxpayer’s GST compliance requirements shall be available to the GSP through APIs. GSPs may use GST APIs and enrich and enhance the tax payer’s experience. (The APIs of GST System are RESTful, json-based and stateless). GST System will not be available over the Internet for security reasons.

The production API end points can only be consumed via MPLS lines. All APIs will be accessed over HTTPS protocol. The benefits of API based integration are:

Consumption across technologies. and platforms (mobile, tablets, desktops, etc.) based on the individual requirements.
Automated upload and download of data.
Ability to adapt to changing taxation and other business rules and end user usage models.
Integration with customer software (ERP, Accounting systems) that tax payers and others are already using for their day to day activities

Question 8.
Write short note on GSP Eco system.
Answer:
GST System is following a platform approach for providing services to Tax Payers.
(a) All GST System functionalities like registration of entities, uploading of invoices, filing of returns will all be available through APIs.

(b) GSTN believes in creating an ecosystem of Service Providers viz GST Suvidha Provider (GSR) providing innovative solutions (Portal, Mobile App, Enriched API) either themseh/es or through its third party partners for making tax filing more easy and convenient to tax payers.

Question 9.
Briefly explain Framework and Guidelines to integrate GST System.
Answer:
Framework and Guidelines for GST/ISP integration integrate GST System are:
Mandatory guidelines and responsibilities: GSP/ISP: For integrating with GSt System project, GSPs shall opt for a robust, fault tolerant infrastructure with enterprise grade SLAs, GSPs shall procure MPLS connectivity from any of the designated ISPs providing integration connectivity to GSt system.
(i) GSTs/ISPs need to provide the CPE router, to terminate the MPLS connectivity at GSTs Data Centre locations. These guidelines and the architecture of connectivity are subject to change overtime, at discretion of GSTN. The GSP and the ISP will need to make the necessary technology changes as and when that happens at his own cost.

(ii) The access to GST system will controlled through GSTN firewalls.

(iii) Each on-boarded ISP shall bring and deploy their own infrastructure in GSTN datacenters in order to provide connectivity services to GSPs.

(iv) ISP’s must provide ISP Routers in HA mode at both DC1 (Delhi) and DC2(Bangalore) locations of GSTN.

(v) ISPs shall arrange for the required .rack space outside the GSTN cage area.

(vi) ISP routers has to be hosted in the ISP’s cage area or ISP’s Rack near to the GSTN DC1/DC2 cage area, in a highly secured manner.

(vii) MPLS connectivity order will be given directly by GSP’s to their respective ISP’s. The cost for all the MPLS link has to be borned by the ISP’s/ GSP’s.

(viii) ISPs shall provide back-haul links at both the GSTN DCs i.e. DC1 and DC2.

(ix) GSTN and/or its MSP will not provide any links or incur any cost for providing the MPLS connectivity to GSPs.

(x) ISPs along with GSPs must provision adequate bandwidth end to end for connecting to GST Systems.

(xi) The ISPs providing connectivity services to GSPs shall provide identical setup in GSTN DC1 and DC2.

(xii) GSPs has to route the GSTN related URLs IPs inside the respective ISPs/GSPs network and the IP details will be provided at the time of integration.

(xiii) The ISPs has to decide the appropriate WAN IPs and Routing Protocols for their respective PE/CE routers.

(xiv) The ISPs shall ensure appropriate P-2-P VPN tunnel till their respective router for securing the data in transit.

(xv) The ISPs shall configure their routers to enable policy based NATing based on the GSP wise traffic classification.