GST Ecosystem


  • The Concept of GST Eco-System

    The Eco-system consists of all stakeholders in GST.

    A common GST system will provide linkage to all

    §  State/UT Commercial Tax departments.

    §  Central Tax authorities

    §  Taxpayers

    §  Tax Professionals

    §  Banks

    §  Accounting Authorities and

    §  other stakeholders.

    The eco-system consists of all stakeholders starting from GSTN to Taxpayers to Tax professional to Tax officials to GST Council to Banks to accounting authorities. The diagram given below depicts the whole GST eco-system.

    Role of Governments

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

    Thus, the frontend shall be provided by GSTN and the backend modules shall be developed by states and Central Government themselves. However 24 states (termed as Model 2 states) have asked GSTN to develop their backend modules also. The CBEC and rest of the states (Model 1) have decided to develop and host the back-end modules themselves.

    Role of Tax Officials

    The officers will be required to use GSTN information at the backend for following functions:

    •    Approval/rejection for enrollment/registration of taxpayers;

    • Tax administration of state tax (Assessment / Audit /Refund / Appeal/ Investigation);

    •    MIS and other functions.

    Role of Tax Payers

    Some of the functions which will be performed by taxpayers through GSTN are:

    • Application for registration as taxpayer, and profile management;

    • Payment of taxes, including penalties and interest;

    • Uploading of Invoice data & filing returns / annual statements;

    • Status review of return/tax ledger/cash ledger.

    Role of Tax Professionals

    GSTN will provide separate user ID and password for Tax Professional to enable them to work on behalf of their customers (Taxpayers) without requiring user ID and password of taxpayers.

    The tax professional will be able to do all the work on behalf of taxpayers as allowed under GST Law except final submission, which will be done by the taxpayers using e-sign (OTP) or Digital Signature Certificate.

    A Tax Payer may choose a different tax professional by simply unselecting it at GSTN portal and delegating to a new tax professional.

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