Business

Goods And Services Tax Network (GSTN) To Start Migrating Over 80 Lakh Existing VAT TIN RC / Taxpayers Onto Its System From This Month

Beginning October, the Goods and Services Tax Network (GSTN) will start migrating over 80 lakh taxpayers onto its system. This will facilitate the smooth implementation of the GST regime. The first part of the software will be ready by end October. Existing taxpayers of value added tax, service tax and central excise will be migrated to GSTN, said Navin Kumar, Chairman, GSTN.

RC to be issued

The GSTN will begin issuing GST RC numbers (TIN) and generating passwords for these taxpayers. They can log on to the system, familiarise themselves, as well as provide relevant information," he said.

The GSTN, which will provide the IT infrastructure for the new indirect tax levy, has already received a list of all the taxpayers, their Permanent Account Numbers (PAN), names of the business entities, and their constitution or form from the state VAT tax authorities.

Requirements

On receiving their ID and passwords, taxpayers will be expected to log on to the GSTN and provide three additional inputs - place and address of business, name(s) of directors or proprietors, and details of bank accounts - which will become part of the GST records.

"Though taxpayers will have time up to six months after the rollout of GST to provide this information, (as provided in MGL) but we thought we will give them an opportunity to come on the system now itself and familiarise themselves," said Kumar, adding that annually about four lakh new taxpayers are estimated to enrol on the IT network.

He also expressed confidence that the GSTN will be ready to meet the rollout target of the indirect tax levy from April 1, 2017. "We will have a beta run from the end of February to end March and will go live from April 1," he said.

Union FM meets Infosys CEO

Finance Minister Arun Jaitley held a meeting where Infosys CEO Vishal Sikka made a presentation on the GSTN and its roadmap. Infosys is the technology partner for GSTN and is developing the system.

Prime Minister Narendra Modi also held a review meeting on the matter with Jaitley and Finance Ministry officials. Apart from the Centre, the GSTN is also building the back-end IT infrastructure and software for 19 states and five Union Territories. Kumar said about 10 states such as Maharashtra, Gujarat and Tamil Nadu are building their own systems.