The GSTN is a complex IT initiative. It will establish a uniform interface for the taxpayer and also create a common and shared IT infrastructure between the Centre and States.
- Trusted National Information Utility
The GSTN is a trusted National Information Utility (NIU) providing reliable, efficient and robust IT backbone for
the smooth functioning of GST in India.
- Handles Complex Transactions
GST is a destination-based tax. The adjustment of IGST (for inter-state trade) at the government level (Centre & various states) will be extremely complex, considering the sheer volume of transactions all over India. A rapid settlement mechanism amongst the States and the Centre will be possible only when there is a strong IT infrastructure and service backbone which captures, processes and exchanges information.
- All Information Will Be Secure
The government will have strategic control over the GSTN, as it is necessary to keep the information of all taxpayers confidential and secure. The Central Government will have control over the composition of the Board, mechanisms of Special Resolution and Shareholders Agreement, and agreements between the GSTN
and other state governments. Also, the shareholding pattern is such that the Government shareholding at 49% is far more than that of any single private institution.
- Expenses Will Be Shared
The user charges will be paid entirely by the Central Government and the State Governments in equal proportion (i.e. 50:50) on behalf of all users. The state share will be then apportioned to individual states, in proportion to the number of taxpayers in the state.