GST Network Things You Should Know (GSTN)

The GST Network (GSTN) is the digital backbone of the Goods and Services Tax system in India. It helps to maintain smooth and secure tax compliance for millions of businesses. It powers the official GST portal for registration, return filing, generating e-invoices, and tracking each GST transaction in real time. GSTN connects the Central Government, State Governments, and taxpayers on one platform to make the entire tax process faster, transparent, and entirely online. In this piece of writing, you will learn about the GST Network.

What is GST Network?

The GST network means the Goods and Services Tax Network. This is commonly known as GSTN, which was incorporated on 28 March 2013. It is a non-governmental and non-profit network. It is a government-owned company that manages the entire IT system of the GST portal. This is an online portal for taxpayers to register, file GST returns, pay taxes, and access all GST-related services. In other words, we can say that GSTN is the digital backbone of the GST system that assists the Government in tracking tax transactions across the country.

Structure of GSTN

The Union government holds a 50% share in the GSTN jointly with the State Governments & Union Territories. The authorised capital of the GSTN is Rs. 10 crore (US$1.18 million). So, this capital is owned by the government, with 50% of shares divided equally between the Central and State governments.

The government has granted a non-recurring grant of Rs. 315 crores to support the operations of GSTN. Infosys was selected in September 2015 to build the technology platform. The first Chairman of GSTN was Mr. Navin Kumar. He is an Indian Administrative Service (IAS) officer (1975 batch). This officer has served in many senior positions with the Government of Bihar and the Central Government.

Below is the table outlining the current shareholding structure of the Goods and Services Tax Network (GSTN): 

Roles of GSTN

Here are the different roles of GST Network:

Single Window for Tax Payment

The major roles of GSTN are to give a single platform for all taxpayers to file and submit their taxes electronically. It provides the necessary information and forms to the taxpayers for filing their taxes to streamline the filing process.  It also provides the government with an efficient way of collecting GST revenues from the taxpayers.

Managing GST

GSTN helps the management of the GST law. It helps the government to track the revenues which is collected as GST from the taxpayer. It also guarantees that the correct amount of taxes is collected from them. GSTN assists the government in monitoring the compliance by taxpayers under the GST law.

Secure Payment Platform

It provides a secure GST account management facility to businesses. This helps them keep a clear and correct record of GST payment and collection. GSTN will also provide the businesses with the necessary information required for filing the GST returns. It also helps them to easily make payments and collections under the GST regime.

Key features of the GSTN

The GSTN is considered as a complex IT initiative. It creates a uniform interface for the taxpayer. It also makes a common and shared IT infrastructure between the Centre and States.

Listed below are the key features of the Goods and Services Tax Network (GSTN):

Trusted National Information Utility

GSTN works as a National Information Utility (NIU). It focuses on providing reliable, efficient and robust data handling for GST operations.

Highly Scalable and Secure Technology Platform

The GST system is based on Open Source technology platform. It is applicable for the seamless interchange of information between diverse systems. This means it protects taxpayer data by using multiple security layers. This platform supports millions of transactions at any given time. It also helps in increasing capacity with the help of adding hardware without affecting the experience of user.

Handles complex transactions

GST is considered as a destination-based tax. The settlement of Integrated Goods and Services Tax (IGST) (for inter-state trade) at the government level (Central and Various states) will remain complex. It mainly accepts the sheer volume of transactions all over India. A rapid way to settle the issues requires a strong IT system for the States and the Centre. This system is required to collect, manage, and share information efficiently.

Efficient Stakeholder Integration and Collaboration

In India, the Goods and Services Tax (GST) system integrates with several external entities. The entities can include banks, GST Suvidha Providers, RBI, and other stakeholders through an open architecture and well-defined Application Programming Interface (APIs). This enhances efficiency, reduces paperwork, and maintains better tax compliance by facilitating seamless data interchange.

Data Safety

The Government controls the GST Network. This is because it is essential to keep the data confidential and secure for all taxpayers. The Central Government maintains the composition of the Board, mechanisms of special resolution and shareholders' agreement, as well as agreements between the GSTN and other state governments.

Continuous Improvement and User-friendliness

GSTN has continuously improved the system to handle more users, improve load management, and refine user experience to enhance taxpayer interaction. This includes the development of offline tools, mobile apps, and AI/ML-driven business intelligence services. It focuses on simplifying compliance-related activities for taxpayers and gives pre-filled return forms for smooth filing.

Functions of GSTN

The Goods and Services Tax Network (GSTN) is considered as the technological and IT backbone of the official GST portal in India. This portal means an interface between the taxpayers and the government. The entire GST process is conducted online, which begins with registration to the filing of returns. The date is effective from 31st March, 2025, it supports about 23.58 billion of invoices and the subsequent return filing for 15.1 million taxpayers. Listed below are the key functions handled by GSTN:

1. E-invoicing
2. E-way Bill
3. Returns
4. Registrations
5. Payments & Refunds

What is GSTIN?

GSTIN stands for Goods and Services Tax Identification Number. Every registered taxpayer under GST gets a unique 15-digit GSTIN, which is based on their PAN. This number helps the government in identifying and verifying taxpayers and tracking transactions.

Conclusion

Therefore, the GST Network (GSTN) helps in smoothly and effectively running the GST system in India. It provides a fully digital platform for registration, tax filing, payment, and security of data for all categories of businesses. The GSTN, with continuous upgrades and advanced technology, supports the government in building a strong, organised and future-ready tax system for the whole country. If you have any queries about it, get in touch with Online Legal India.

FAQ

Q1. What is GST Network?

The GST network stands for the Goods and Services Tax Network. It is commonly referred to as GSTN. It is a non-profit and non-governmental organisation that handles the entire IT system of the GST portal.

Q2. Are GSTN and GSTIN is Same?

GSTN (Goods and Services Tax Network) is an online network that handles all aspects of GST. On the other hand, GSTIN (Goods and Services Tax Identification Number) means a 15-digit unique identification number. This number is assigned to each registered taxpayer on the GSTN.

Q3. What is the purpose of GSTN?

The purpose of GST Network is that integrate the implementation, governance, and administration of GST by using sophisticated information technology and infrastructure. It is responsible for maintaining the central GST portal and ensuring efficiency in its operations.

Q4. What does GSTN stand for in PAN?

GSTIN stands for the Goods and Service Tax Identification Number in PAN. It is the unique identification number which is assigned to a dealer or supplier in the GST regime. It is in the following format:

1. The first two digits represent the state code
2. The next ten digits correspond to the entity's PAN (Permanent Account Number).

Disclaimer

This article is for informational purposes only and does not constitute legal advice. Online Legal India is a digital platform. If you require legal assistance, we strongly recommend consulting a qualified lawyer or law firm.