Impact of IT in GST era The GSTN De-mystified · What is the role of Infosys in GSTN? GSTN has...

ImpactofITinGSTeraTheGSTNDe-mystified

CMA.TCASrinivasaPrasadVoiceContact:+91947-770-2227

CloudContact:[email protected]

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04/08/17

CMA.TCASrinivasaPrasad1

WhatisGSTN?

Goods and Services Tax Network (GSTN) is a not-for-profit, non-governmentcompany promoted jointly by the Central and State Governments, which willprovide shared IT infrastructure and services to both central and stategovernments including tax payers and other stakeholders. The Frontendservices of Registration, Returns, Payments, etc. to all taxpayers will beprovided by GSTN. It will be the interface between the government and thetaxpayers.


WhatwasneedtocreateGSTN?

•The GST System Project is a unique and complex IT initiative

•GST being a destination based tax, the inter- state trade of goods and services(IGST) would need a robust settlement mechanism amongst the States andthe Centre.

• This is possible only when there is a strong IT Infrastructure and Service backbone which enables capture, processing and exchange of information amongstthe stakeholders (including taxpayers, States and Central Government, Bankand RBI). To achieve these objectives GSTN was created.


WhatserviceswillberenderedbyGSTN?

GSTNwillrenderthefollowingservicesthroughtheCommonGSTPortal:• (a)Registration(includingexistingtaxpayermigration,aprocesswhichbeganon8thNov2016);• (b)PaymentmanagementincludingpaymentGatewaysandintegrationwithbankingsystems;• (c)Returnfilingandprocessing;• (d)Taxpayermanagement,includingaccountmanagement,notifications,information,andstatustracking;• (e)TaxauthorityaccountandledgerManagement;• (f)Computationofsettlement(includingIGSTSettlement)betweentheCentreandStates;ClearinghouseforIGST;


WhatserviceswillberenderedbyGSTN?

• (g)ProcessingandreconciliationofGSTonimportandintegrationwithEDIsystemsofCustoms;• (h)MISincludingneedbasedinformationandbusinessintelligence;• (i)MaintenanceofinterfacesbetweentheCommonGSTPortalandtaxadministrationsystems;• (j)Providetrainingtostakeholders;• (k)ProvideAnalyticsandBusinessIntelligencetotaxauthorities;and• (l)Carryoutresearchandstudybestpractices.


WhatistheinterfacesystembetweenGSTNandtheStates/CBEC?

In GST regime, while taxpayer facing core services of applying for registration,uploading of invoices, filing of return, making tax payments shall be hosted byGST System, all the statutory functions (such as approval of registration,assessment of return, conducting investigation and audit etc.) shall beconducted by the tax authorities of States and Central governments.


WhatwillbetheroleofGSTNinregistration?

• TheapplicationforRegistrationwillbemadeOnlineonGSTPortal.• SomeofthekeydatalikePAN,BusinessConstitution,Aadhaar,CIN/DINetc.(asapplicable)willbevalidatedbytheGSTPortalonlinewiththerespectiveagencyi.e.CBDT,UID,MCAetc.,therebyensuringminimumneedforsubmissionofdocumentation.• TheapplicationdataalongwithsupportingscanneddocumentsshallbesentbyGSTNtostates/Centre,whichinturnshallsendthequery,ifany,orapprovalorrejectionintimationanddigitallysignedregistrationtoGSTNforeventualdownloadbythetaxpayer.


WhatistheroleofInfosysinGSTN?

GSTNhasengagedM/SInfosysasasingleManagedServiceProvider(MSP)forthedesign,developmentanddeploymentofGSTsystem,includingallapplicationsoftware,toolsandInfrastructureandforoperating&maintainingthesystemforaperiodof5yearsfromtheGo-Livedate.


WhatarethebasicfeaturesofGSTcommonportal?

• TheGSTportal(www.gst.gov.in)isaccessibleoverInternet(byTaxpayersandtheirCMAs/TaxAdvocatesetc.)andIntranetbyTaxOfficialsetc.TheportalisgoingtobeonesinglecommonportalforallGSTrelatedservicese.g.–• Taxpayerregistration(New,surrender,cancelation,amendmentetc.);• Invoiceupload,auto-draftingofPurchaseregisterofbuyer,GSTReturnsfilingonstipulateddatesforeachtypeofreturn(GSTR[1,2,3,5,9.etc];• TaxpaymentbycreationofChallanandintegrationwithagencyBanks;• ITCandCashLedgerandLiabilityRegister;• MISreportingfortaxpayers,taxofficialsandotherstakeholders;• BI/AnalyticsforTaxofficials..


WhatistheconceptofGSTEco-system?

AcommonGSTsystemwillprovidelinkagetoallState/UTCommercialTaxdepartments,CentralTaxauthorities,Taxpayers,Banksandotherstakeholders.

Theeco-systemconsistsofallstakeholdersstartingfromtaxpayertotaxprofessionaltotaxofficialstoGSTportaltoBankstoaccountingauthorities.ThediagramgivenbelowdepictsthewholeGSTeco-system.


WhatisGSP(GSTSuvidha Provider)?

• GSTSystemwillprovideaGSTportalfortaxpayerstoaccesstheGSTSystemanddoalltheGSTcomplianceactivities.Buttherewillbewidevarietyoftaxpayers(SME,LargeEnterprise,MicroEnterpriseetc.)whichmayrequiredifferentkindoffacilitieslikeconvertingtheirpurchase/salesregisterdatainGSTcompliantformat,IntegrationoftheirAccountingPackages/ERPwithGSTSystemetc.,variouskindofdashboardstoviewMatched/MismatchedITCclaims,Taxliability,Filingstatusetc.

• Asinvoicelevelfilingisrequired,solargeorganizationsmayrequireanautomatedwaytointeractwithGSTsystemasitmaybepracticallyimpossibleforthemtouploadlargenumberofinvoicesthroughawebportal.


WhatisGSP(GSTSuvidha Provider)?

• Soaneco- systemisrequired,whichcanhelpsuchtaxpayersinGSTcompliance.• AsTaxpayerconveniencewillbethekeytosuccessofGSTregime,thiseco-systemwillalsoprovideTaxpayeroptionsofusingthirdpartyapplications,whichcanprovidedifferentkindofinterfacesondesktop/mobileforthemtobeGSTcompliant.


WhatwillbetheroleofGSTSuvidha Providers(GSP)?

• GSP will be developing applications having features like return filing,reconciliation of purchase register data with auto populated data foracceptance/rejection/Modification, dashboards for taxpayers for quickmonitoring of GST compliance activities.• They may also provide role based access to divide various GST relatedactivities like uploading invoice, filing returns etc., among different set of usersinside a company (medium or large companies will need it), Applications forTax Professional to manage their client’s GST compliance activities, Integrationof existing accounting packages/ERP with GST System, etc.


WhatarethebenefitstotaxpayersinusingtheGSPs?

• AttheoutsetitisclarifiedthatallrequiredfunctionsunderGSTcanbeperformedbyataxpayerattheGSTportal.GSPisanadditionalchannelbeingmadeavailableforperformingsomeofthefunctionsanduseoftheirservicesisoptional.Someofthespecificsolution(s)whichcouldbeofferedbytheGSPstomeetspecificrequirementsofTaxpayersforGSTcompliancearegivenbelow:• 1.Conversionoftheircurrentinvoiceformatgeneratedbytheirexistingaccountingsoftware,whichcouldbeincsv,pdf,excel,wordformat,intoGSTcompliantformat.• 2.ReconciliationofautopopulateddatafromGSTportalwiththeirpurchaseregisterdata,wherepurchaseregisterdatacanbeonexcel,csvorinanyproprietarydatabaseanduploadeddatafromGSTformatcouldbeinjson/csv.


WhatarethebenefitstotaxpayersinusingtheGSPs?

• 3.Organizationhavingvariousbrancheswillneedawaytouploadbranchwiseinvoices,asGSTSystemwillonlyprovideoneuser-id/passwordforGSTsystemaccess.Anapplicationhavingrolebasedaccessanddifferentviewfordifferentbrancheswillbeneeded.• 4.AcompanyregisteredinmultipleStatesmayrequireunifiedviewofallbranchesinonescreen,• 5.GSTprofessionalswillneedsomespecificapplicationstomanageandundertakeGSTcomplianceactivitiesfortheirclientTaxpayersfromonedashboard,etc.

Abovearejustafewillustrations.TherewillbemanymorerequirementsofdifferentsetsofTaxpayers.TheserequirementsoftaxpayerscanbemetbyGSPs.


WhatarethefunctionswhichataxpayerwillperformattheGSTN

• GSTCommonPortalisenvisagedasone-stop- shopforallrequirementsunderGSTforthetaxpayers.IllustrativelistoffunctionsthatcanbeperformedbytaxpayersthroughGSTPortalmanagedbyGSTNare:• Applicationforregistrationaswellasamendmentinregistration,cancellationofregistrationandprofilemanagement;• Paymentoftaxes,includingpenalties,fines,interest,etc.(intermsofcreationofChallanaspaymentwilltakeplaceatbank’sportalorinsideabankpremises);•


WhatarethefunctionswhichataxpayerwillperformattheGSTN

• ChangeofstatusofataxpayerfromnormaltoCompoundingandvice-versa;• UploadingofInvoicedata&filingofvariousstatutoryreturns/Annualstatements;• Trackstatusofreturn/taxledger/cashledgeretc.usinguniqueApplicationReferenceNumber(ARN)generatedonGSTPortal.• Statusreviewofreturn/taxledger/cashledger


RoleoftaxofficersfromStateandCentralGovt inGSTN

Theofficerswilluseinformation/applicationsubmittedbytaxpayeronGSTPortalforfollowingstatutoryfunctions:• Approval/rejectionforenrolment/registrationoftaxpayers;• Taxadministration(Assessment/Audit/Refund/Appeal/Investigationetc.);• BusinessAnalytics,MISandotherstatutoryfunctions.


WillGSTNgenerateauniqueidentificationforeachinvoicelineinGSTNsystem?

No,GSTNwillnotgenerateanynewidentification.

ThecombinationofSupplier’sGSTIN,InvoicenoandFinancialyearwillmakeeachInvoiceunique.


Caninvoicedatabeuploadedondaytodaybasis?

• Yes, GST Portal will have functionality for taxpayers to upload invoice data onany time basis.

• Early upload of invoices by supplier taxpayer will help receiver taxpayer inearly reconciliation of data in Invoices as well as help supplier taxpayer inavoiding last minute rush of uploading returns on the last day.


WillGSTNprovidetoolsforuploadinginvoicedataonGSTportal?

• Yes, GSTN will provide spreadsheet like tools (such as Microsoft Excel), free ofcost, to taxpayers to enable them to compile invoice data in the same andgenerate files which can then be uploaded on GST portal.

• This will be an offline tool which can be used to input/capture invoice datawithout being online and then generate final files in compatible format foruploading to GST portal.


WillGSTNbeprovidingmobilebasedAppstoviewledgersandotheraccounts?

• TheGSTportalisbeingdesignedinsuchawaythatitcanbeseenonanysmartphone.

• Thusledgerslikecashledger,liabilityledger,ITCledgeretc.canbeseenonamobilephoneusingcompatiblebrowsers.


WillGSTNprovideseparateUser-idandPasswordforGSTPractioners

• Yes, GSTN will be providing separate user ID and Password to GST Practitionerto enable them to work on behalf of their clients without asking for their userID and passwords.

• They will be able to do all the work on behalf of taxpayers as allowed underGST Law.


WilltaxpayerbeabletochangetheGSTPractitioneroncechoseninabovementioned

facility?

Yes, a taxpayer may choose a different GST Practitioner by simply unselectingthe previous one and then choosing a new GST Practitioner on the GST portal.


WhatmaterialwillbeprovidedbyGSTN,onvariousaspectsofworkingonGSTportal,forthe

benefitoftaxpayers?• GSTN is preparing Computer Based Training materials (CBT’s) which havevideos embedded into them for each process to be performed on the GSTportal.• These will be put on the GST portal as well as on the website of all taxauthorities. Apart from CBT’s, Various User Manuals, FAQ’s etc., will also beplaced on GST Portal for education of the taxpayers.• Apart from it, a helpdesk has been set up for the taxpayers for logging of theirtickets via mail ([email protected]) or phone (0124-4688999). CBT, FAQ andUser Manual for enrolment process are available athttps://www.gst.gov.in/help.


WillthereturnandregistrationdatafurnishedbythetaxpayersontheGSTCommonPortalwill

remainConfidential?• Yes, all steps are being taken by GSTN to ensure the confidentiality of personaland business information furnished by the taxpayers on GST Common Portal.

• This will be done by ensuring Role Based Access Control (RBAC) andencryption of critical data of taxpayers both during transit and in storage.

• Only the authorized tax authorities will be able to see and read the data.


WhatarethesecuritymeasuresbeingtakenbyGSTNtoensuresecurityoftheGSTsystem?

• GSTSystemsprojecthasincorporatedstateofartsecurityframeworkfordataandservicesecurity.Besideshighendfirewalls,intrusiondetection,dataencryptionatrestaswellasinmotion,completeaudittrail,tamperproofingusingconsistenthashingalgorithms,OSandhosthardeningetc.• GSTNisalsoestablishingaprimaryandsecondarySecurityOperationsCommand&Controlcenter,whichwillproactivelymonitorandprotectmaliciousattackinrealtime.• GSTNisalsoensuringsecurecodingpracticesthroughcontinuousscanningofsourcecode&librariesbeingusedinGSTsystemtoprotectagainstcommonlyknownandunknownthreats.


ThanksfortheValueAdditions

CMA.TCASrinivasaPrasadVoiceContact:+91947-770-2227

CloudContact:[email protected]

WebHouse:www.tcasprasad.in


Impact of IT in GST era The GSTN De-mystified · What is the role of Infosys in GSTN? GSTN has...

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