Information Technology: The Backbone of GST Implementation

IT Backbone of GST

“A Goal Without A Plan Is Just A Wish.”

Truly, for a goal like GST, every inch of effort taken has contributed tremendously to the major transformation that is about to set in. When GST was no more than a distant goal, a national agenda, it was like a ladder with various rings to building a solid financial structure of the country. One such propelling force, the important ring in the ladder is called ‘Technology.’

For the implementation of GST, technology forms the backbone and the most crucial part throughout the process. The reason of making everything web driven were countless cases of tax evasion resulting in the loss of tax. Besides, complicated compliance system led to duplication of claims or liabilities that did not correspond to the seller. For such reasons and more, government decided to ease out the tax structure of the GST regime by giving it an online platform.

Therefore, Information Technology in GST implementation being one of the most fundamental pillars, the Government has set up large technology platforms namely:

  • GSTN (GST Network) that will store all data related to GST including invoices and returns. GSTN is equipped with API (Application Programme Interface) that will help GSTN to connect with third party applications used by taxpayers.
  • GSP (GST Suvidha Provider) is an online compliance platform for the taxpayers under GST law. In other words, GSP are intermediary between GSTN that provide services like registration, invoice generation etc.

Now, the question is how would GSTN help in seamless working of GST Bill?

The Pan-based registration process of traders along with filing of tax returns and payment systems would be accelerated by GSTN. It would also allow new taxpayers to register using PAN and mobile number or Aadhar card number. All the businesses would be provided with a 15 digit code, consisting of a State code or ten digit PAN. In a nutshell, the portal would be a one stop solution for filing and processing all taxes by the taxpayers.

And the role of GSP?

GSPs would offer support and services to help taxpayers and businesses with GST compliance. In total, there are 34 companies that are selected as GSPs with SISL Infotech Pvt. Ltd. being one of them.

If we dive deeper into how GST works, we cannot deny the contribution of ASPs(Application Service Provider). ASPs are software vendors that help in filing of returns to the taxpayers. ASPs would bridge the gap between GSP and ultimate taxpayers by converting raw data into useful information. Being a quick process, it will save a lot of time of the users.

Well,  the role of IT in GST roll out would not only ensure a control over tax evasion but also promote Digital India campaign apart from being a cost-effective model. With GST implementation, a paperless, worry free accountancy is sure to follow!

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