Goods and Services Tax Act, 2017 - GST Services - GST Rates

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Goods and Services Tax Act

About Us

NSDL e-Governance Infrastructure Limited (NSDL e-Gov) was originally setup as a Depository in 1995 and has over the years used its inherent strengths, project management capabilities & technology expertise to deliver state of the art e-Governance solutions which has helped Governments to identify and clear bottlenecks, promote transparency, reduce service delivery costs and deliver public services efficiently. The solutions have efficiently made use of information and communication technologies as a tool for delivering public services and benefits to society at large.

NSDL e-Gov works closely with various Government agencies for designing, managing and implementing e-Governance Projects. Over a period of time, NSDL e-Gov has gained varied experience and expertise in areas that help Governments overcome various challenges faced by them in fulfilling their core responsibilities of delivering public services to the society. NSDL e-Gov has also established Service Centre network across the country which serve as access points for the general public and are efficiently used by Governments to deliver quality services in a user friendly and transparent manner to the citizens.

About GST

Goods & Services Tax (GST)

Introduction of Goods and Services Tax (GST) in India is perceived to be the most ambitious initiative in the arena of indirect tax reform. It would change the Indian tax structure and pave the way for modernization of tax administration - make it simpler and more transparent and significantly enhance voluntary compliance. GST is also envisaged as a major step for boosting business. It is estimated that GST could bring in 0.9 to 1.7 % change to the GDP of the country.

GST is a broad-based, comprehensive, single indirect tax which will be levied concurrently on goods and services. It will subsume most of the Central and State indirect taxes such as Value Added Tax (VAT), Central Sales Tax(CST), Excise Duty and Service Tax.

GST is based on a destination-based taxation system, where tax is levied on final consumption. It is expected to broaden the tax base, establish a common market across the country, reduce compliance costs, and promote exports.

The GST demands a well-designed and robust IT system for realizing its potential in reforming indirect taxation in India. The IT system for GST would be a unique system, which will integrate the Central and State tax administrations.

Introduction of the GST required amendments in the Constitution so as to concurrently empower the Centre and the States to levy and collect the GST. With the 101st Constitution Amendment Act coming into force on 8th September, 2016 and notification of the GST Council on 15th September the road to GST rollout is clear.

  • The Bill provides for a levy of GST on supply of all goods or services except for Alcohol for human consumption, Petroleum products and Electricity.

  • The tax shall be levied as Dual GST separately but concurrently by the Union (CGST) and the States (SGST).

  • Centre to levy & collect IGST on supplies in the course of inter-State trade or commerce including imports.

  • The Central Government will have the power to levy excise duty in addition to the GST on tobacco and tobacco products.

The government is targeting to roll out GST from 1 July 2017 and meeting the roll out deadline would depend upon finalization of supporting legislations.

GST Pilot for Govt.

NSDL e-Gov had undertaken the GST Pilot during 2011 to 2014 for Govt. of India and we will be leveraging on this experience to provide the best services to our partners & clients.


Brief details on GST Pilot are mentioned below:

The Empowered Group on IT Infrastructure in its ‘‘IT Strategy for GST’’ document stated that on the IT front there has been consensus that there should be a common portal providing three core services (Registration, Tax Payment and Return Filing).

NSDL e-Gov was assigned the task of undertaking a proof of concept (pilot) for GST implementation and developing and managing the GST Portal during this Pilot implementation.Major activities done in Pilot project were ‘As-Is’ Study of Centre and States/ UTs , setting up of GST Pilot Portal with three core modules of Registration, Tax Payments and Returns Filing, verification of dealer PAN and core fields etc. and preparation for dealer data migration. A detailed project report for GST roll-out was also prepared and submitted by NSDL e-Gov.

NSDL e-Gov conducted workshops for dealers and officials of the Commercial Tax Department of Pilot States and Centre. This workshop covers all three modules of GST Portal. More than one thousand dealers participated in these workshops. Hands on training were conducted during these workshops and dealers could experience the process of application for GST Registration, performed online transactions for Tax Payments using dummy accounts and completed the process of preparing / uploading the Tax Returns with dummy transactions.

Dealer data Analysis and Migration of Dealers

PAN presence in the existing dealer database of VAT, Excise and Service tax is very critical, as the proposed GST Identification Number (GSTIN) is a PAN based number.

In view of this, NSDL e-Gov was advised to collect Dealer data from Centre & all States / UTs and undertake PAN data analysis. In addition to PAN, core fields in the dealer data such as Name of tax payer, Details of principal place of business and Details of persons interested in business etc. were also verified and reported.

Even currently NSDL e-Gov is interacting with Centre & all States / UTs regularly and providing them assistance in verifying the Dealer PAN data . This has helped in dealer data migration and smooth transition to GST regime.

GST Suvidha Provider (GSP)

Goods and Services Tax Network (GSTN) has been formed by Government of India under section 25 of Companies Act, 1956, which will host IT infrastructure, systems and provide services to the Central and State Governments, tax payers and other stakeholders for supporting implementation and administration of GST.

GSTN has permitted tax payers to interface with GST System via third party applications through secure GST system APIs. Entities developing such applications are called GST Suvidha Provider (GSP). GSP will need to connect to the GST system directly through an MPLS or VPN connection.

The GSPs are envisaged to provide innovative and convenient methods to taxpayers and other stakeholders in interacting with the GST Systems from registration of entity to uploading of invoice details to filing of returns.Thus there will be two sets of interactions, one between the App user and the GSP and the second between the GSP and the GST System.

GSTN believes in creating an ecosystem of Service Providers viz GST Suvidha Provider (GSP) providing innovative solutions (Portal, Mobile App, Enriched API) either themselves or through its third party partners for making tax filing more easy and convenient to tax payers.

The GSP developed Apps will connect with the GST system via secure GST system APIs. Some of the functions of GSP are:

  • Development of various apps / interfaces for taxpayer, TRPs of GST system

  • Providing other value added services to the taxpayers

Goods and Services Tax Act, 2017 - GST Services - GST Rates

GSTN envisages a very important role of GSPs in making GST rollout easy and convenient for tax payers.

Methodology

Taxpayer via his choice of third party applications, which will provide all user interfaces and convenience via desktop, mobile, other interfaces, will be able to interact with the GST system. The third party applications will connect with GST system via secure GST system APIs

Apart from uploading of invoices & filing of returns, following other services are expected form GSPs

  • Maintaining individual business ledgers (sales ledger and purchase ledger)

  • Other value added services

  • Automatic reconciliation of purchase made and entered in the purchase register and data downloaded in the form of GSTR-2 from the GST portal

  • Other value added services

  • Sector specific/trade specific facilities

  • Converting taxpayer’s purchase/sales register data in GST compliant format

  • Integration of taxpayer’s Accounting Packages/ERP with GST System

Goods and Services Tax Act, 2017 - GST Services - GST Rates