Related Topics: GST, Indian Economy
- GSTN has decided to make Aadhaar authentication or physical verification mandatory for new dealers from January 2020 to check malpractices in GST.
Why making Aadhaar or Physical verification mandatory?
- The decision was taken after noticing in the last two years that there is a good number of fly-by-night operators, who make fake invoices.
- Those who don’t want Aadhaar authentication, physical verification will be carried out, which will be completed in three days.
- Currently, Aadhaar authentication is optional and no physical verification is required.
What is GSTN?
- Goods and Services Tax Network (GSTN) is a not for profit, non-Government, private limited company.
- The Company has been set up primarily to provide IT infrastructure and services to the Central and State Governments, tax payers and other stakeholders for implementation of the Goods and Services Tax (GST).
- It is unique as it seeks, for the first time to establish a uniform interface for the tax payer and a common and shared IT infrastructure between the Centre and States.
- It was incorporated on March 28, 2013.
Recent Change in Shareholding Pattern of GSTN
- Earlier, the Central Government and State Government were holding 24.5% equity shares respectively and the remaining 51% were held by non-Governmental institutions.
- The restructured GSTN, with 100% government ownership has equity structure between the Centre (50%) and the States (50%).
Need for the Change in Shareholding
- Through various mechanisms, GSTN is under strategic control of government.
- Majority of the GST processes including registration, filing of returns, payment of taxes, processing of refunds is IT driven.
- GSTN is handling large-scale invoice level data of lakhs of business entities including data relating to exports and imports.
- Considering the nature of ‘state’ function performed by GSTN, GST Council felt that GSTN should be converted into a fully owned government Company.