1. Computerization Program Preparing for GST Commissioner of Sales Tax,
GST Network (GSTN)
&
Computerization Program Preparing for GST
2nd June 2012
Sanjay Bhatia,
Commissioner of Sales Tax,
Maharashtra

2. GST Current status Discussion paper on GST published in November 2009
Constitutional amendment bill being evaluated by Standing Committee
Computerization for GST in initial stages through Empowered Group on IT infrastructure (Nilekani Committee) and Mission Mode Project.

3. Need for Computerization
VAT experience
VAT from without computerization
Geographical administration changed to functional administration
Mandatory assessment replaced by assessment / audit by exception
Single point levy at first stage replaced by multi point levy of tax thereby ITC claimed at each stage of sale
Legacy of huge return default and incorrect and incomplete filing of returns

4. Need for Computerization
As quality data not available and automation was not in place so implementation of VAT became very difficult. Steps taken for computerization
Correct and complete filing of returns ensured through electronic filing
ITC verification ensured through electronic cross checks using electronic sales and purchase annexure
CST form distribution mechanism established through online electronic application
E-payment of tax made mandatory
Other e-services like e-registration ECS of refunds etc., started
This computerization took 4 to 5 years after VAT introduction.
VAT experience has taught that computerization is a must for smooth implementation of GST

5. Computerization Initiatives
At national level MMP and TINXSYS teams conducted study on status of computerization in different states
_ States at different level of computerization
Maharashtra, TN, Kerala, AP, Karnataka and Gujarat ahead of other States
EC and GOI set up Empowered Group on IT infrastructure(EGIT) for implementation of computerization under the Chairmanship of Mr. Nandan Nilekani

6. Empowered Group On IT
Members comprise of CBEC, Dept Of Revenue and State Commissioners .
Concept paper prepared on opening national level common portal for e-services. Uniform systems of Registration, Return filing and e-Payments to be made available on this portal to all the States
Cafeteria Model for automation i.e. other services to be provided on payment basis through common portal
Computerization to be implemented through national level GST Network (GSTN)

7. GSTN Background
Empowered Committee approved creation of SPV, a non-Government Company registered under the Companies Act, 1956
Key objective to provide shared infrastructure and services to Centre and State Governments

8. GSTN
EC consensus on having Common Portal providing three core services common across the country
Dealer registration,
Tax payments and
Returns acceptance
EGIT
to evaluate suitable agency for incubating the National Information Utility (NIU) for GST.
National Securities Depository Limited (NSDL) was selected as technology partner for incubating NIU to operate the IT backbone for GST”.
EGIT, CBEC, JWG of EC and NSDL have evolved a strategy for implementing GSTN

9. GSTN Area of Operation Three options
Full Service Model-full range of GST services
Limited Service Model- Only Registration, Returns and Payment on GSTN
Application Programming Interface (API)-Operational flexibility to states but adhere to common process

10. GSTN Action Plan
Build efficient and convenient interfaces with tax payers tax administrators and other stakeholders like banks, CBDT etc.
Facilitate, implement and set standards for providing common GST services to the centre and state Government.
Carry out research, study global best practices and provide training to the stakeholders

11. GSTN Functions
Tax Payers management including account management, notification, information, status tracking.
Tax Authority Account / ledger Management
Computation of settlement (including IGST settlement ) among centre and states
Processing and reconciliation of import GST and integration with Customs EDI systems
MIS including need based information and business intelligence
Maintenance of interfaces between the common portal and tax administration systems

12. GSTN Functions
GSTN portal will be launched to provide information to taxpayers
Updated information about Act, Rules, Notifications, Circulars, procedures would be available
Portal to be integrated with automation systems of all states

13. GSTN Present Status Central Portal under development by NSDL
Online Registration application ready
Eleven states identified for pilot project.
States in the process of modifying their applications in line with GST procedures.
UAT set up being prepared.
- Following options being explored-
Shared UAT set up by NSDL
Cloud services by BSNL
GSTN to be operational by August 2012

14. GSTN Process of actual setting up of GSTN is on GSTN to first handle:-
360° Pilot Project of Maharashtra & its expansion to other states.
TINXSYS
Management of Pilot Project of 11 states.

15. Scope of Work
Development of Registration Module and migration of dealer registration data
Development of Return Filing and processing including ITC matching
Development of payment Module
Development of IGST settlement Module
Providing MIS

16. Way forward – for Pilot PAN Updation by States / UTs
States / UTs to estimate efforts for modification to existing VAT systems
Setting up of Test Set-Up by States / UTs
Modify the State /UTs VAT System
Establish interface with the common Portal
Invite Dealers / Vendors for testing the modules
Banks to make necessary system changes to CBS
Full round of testing by all entities
All 35 States / UTs sensitized regarding GST Pilot and related activities
Existing dealer data received from 33 states / UTs /Centre analyzed and shared ( 2 UTs have no dealers)

17. Challenges in GSTN
Finalization of common Registration, Return & Payment format.
Setting up of GSTN
IGST settlement
Getting all PANs
Handling of legacy data
Passwords for 60 Lac dealers
Interface with state’s existing systems.

18. Challenges/Issues in GST
Handling of issues of administration (Dual Control)
Interstate transactions – whether IGST?
Interstate transactions - Settlement mechanism
RNR ( Revenue Neutral Rate) issues.
Differential thresholds

19. Thank You

20. Registration Process Features
On line registration
Single application – Centre, State & across the States
Mandatory PAN
No physical record
Defined uniform process
Status tracking system
Time bound registration
Online amendment
Possibility of ‘No registration certificate’
– status check online

21. Returns Process Features
Common portal to accept return
Mandatory e-filing and e-payment
Single return in each State for Centre, State & all Acts
Returns along with annexure containing sale-purchase details
Help available for e-filing
Revision of returns
Annual audit report instead annual return