GST and Technology Notes

GST providers: To enable taxable persons to comply with the requirements of GST, 34 companies have been given permission to act as GST suvidha providers. These providers will enable a middle tier of entrepreneurs, who can develop innovative services and solutions for a variety of tax payers.

GSTN: Goods and Services Tax Network (GSTN) is a nonprofit non-government company, which will provide shared IT infrastructure and service to both central and state governments including tax payers and other stakeholders. The Frontend services of registration, Returns and payments to all taxpayers will be provided by GSTN. It will be the interface between the government and the taxpayers.

GST system: Under GST system a uniform sharing of IT infrastructure between the center and states has been established.

GSP: GSP stands for GST Suvidha Provider. A GSP is considered as an enabler for the taxpayer to comply with the provisions of the GST law through its web platform (essentially an online compliance platform such as ClearTax).

GSP eco-system: Under GSP eco-system uploading invoice information, matching of input tax credit (ITC) claims, creation of party-wise ledgers, uploading of returns, payment of taxes, signing of documents with digital signature is done electronically.

Mandatory for e-commerce operator to obtain registration: Yes it it mandatory for e-commerce operator to obtain registration. Section 19 r/w Schedule-III of the MGL, provides, that the threshold exemption is not available to e-commerce operators and they would be liable to be registered irrespective of the value of supply made by them.

Aggregator: Section 43B(a) of the MGL defines aggregator to mean a person, who owns and manages an electronic platform, and by means of the application and communication device, enables a potential customer to connect .with the persons providing service of a particular kind under the brand name or trade name of the said aggregator. For instance, Qla cabs would be an aggregator.

Aggregator required to be registered under GST: Yes an aggregator required to be registered under GST. Section 19 r/w Schedule-III of the MGL, provides that the threshold exemption is not available to aggregators and they would be liable to be registered irrespective of the value of supply made by them.

Tax Collection at Source (TCS): In terms of Section 43C(1) of the MGL, the e-commerce operator is required to collect (i.e. deduct) an amount out of the consideration paid or payable to the actual supplier of goods or services in respect of supplies of goods and / or services made through such operator. The amount so deducted/collected -is called as Tax Collection at Source (TCS).

Concept of GST Eco-system: A common GST system will provide linkage to all State/UT Commercial Tax departments, Central Tax authorities, Taxpayers, Banks and other stakeholders. The eco-system consists of all stakeholders starting from taxpayer to tax professional to tax officials to GST portal to Banks to accounting authorities.

Empowered Group on IT Infrastructure for GST with following members:

  • Member (B&C), CBEC.
  • Additional Secretary (Revenue), DoR.
  • DG (Systems), CBEC as Member-Secretary
  • FA, Ministry of Finance
  • Member Secretary, Empowered Group of State Finance Ministers
  • Member Technology Advisory Group for Unique Protects (TAGUP).
  • Commercial Tax Commissioners of Maharashtra, Assam, Karnataka, West Bengal and Gujarat.

Services will be rendered by GSTN:

  • Registration (including existing taxpayer master migration and issue of PAN based registration number)
  • Payment management including payment gateways and integration with banking systems
    Return filing and processing.
  • Taxpayer management, including account management, notifications, information, and status tracking.
  • Tax authority account and ledger Management.
  • Computation of settlement (includinq IGST settlement) between the Centre and States; Clearing house for IGST].

Basic features of GST common portal:

  • Tax payer registration (New, surrender, cancelation, etc.)
  • Invoices upload, auto-draftirig of Purchase register- of buyer Periodic GST Returns filing.
  • Tax payment including integration with agency banks.
  • ITC and Cash Ledger and Liability Register
  • MIS reporting for tax payers, tax officials and other stakeholders.
  • BI/Analytics for Tax officials.