Meaning of GSTN
The Goods and Services Tax Network (GSTN) is a non-profit organisation established to create a centralised and secure technology portal for GST stakeholders, Government agencies, and taxpayers.
GSTN provides the technological platform required for the administration of the Goods and Services Tax (GST). The portal allows tax authorities to monitor transactions effectively and provides taxpayers with access to GST-related services.
Through the GSTN portal, taxpayers can file GST returns and manage their tax obligations.
Exam Point: GSTN provides the centralised and secure IT platform for GST administration.
GSTN Software and IT Infrastructure
The GSTN software was developed by Infosys.
The software operates on an Information Technology infrastructure maintained by the National Informatics Centre (NIC).
Thus, the GST technology system combines GSTN’s centralised portal with the IT infrastructure maintained by the NIC.
| Particular | Details |
|---|---|
| GSTN Software Developer | Infosys Technologies |
| IT Infrastructure Maintained By | National Informatics Centre (NIC) |
| Nature of GSTN | Non-profit organisation |
| Main Purpose | Centralised and secure GST portal |
Functions of GSTN
GSTN acts as a common technology platform for taxpayers, tax authorities, Government agencies, and other GST stakeholders.
For tax authorities, the GSTN portal helps in monitoring GST transactions effectively.
For taxpayers, the portal provides seamless access for filing returns and managing tax obligations.
Therefore, GSTN serves as an important technological link between the Government and GST taxpayers.
Authorised Capital of GSTN
The authorised capital of GSTN is ₹100 million.
This capital structure was established to support the operations and technological requirements of the GST Network.
Exam Point: The authorised capital of GSTN is ₹100 million.
Initial Shareholding Pattern of GSTN
Initially, GSTN had a mixed Government and non-Government ownership structure.
The Central Government held 24.5% of the shares, while the State Governments collectively held another 24.5%.
The remaining 51% shares were held by non-Government financial institutions.
| Shareholder | Initial Shareholding |
|---|---|
| Central Government | 24.5% |
| State Governments | 24.5% |
| Non-Government Financial Institutions | 51% |
| Total | 100% |
The non-Government financial institutions included HDFC and HDFC Bank with a combined shareholding of 20%, ICICI Bank with 10%, NSE Strategic Investment with 10%, and LIC Housing Finance with 11%.
Initial Shareholding of Non-Government Institutions
| Institution | Shareholding |
|---|---|
| HDFC and HDFC Bank | 20% |
| ICICI Bank | 10% |
| NSE Strategic Investment | 10% |
| LIC Housing Finance | 11% |
| Total Non-Government Shareholding | 51% |
Exam Point: Initially, 51% of GSTN was held by non-Government financial institutions, while the Central and State Governments each held 24.5%.
Conversion into a Wholly Government-Owned Company
GSTN was later converted into a wholly Government-owned company.
After the conversion, ownership was divided equally between the Central Government and State Governments.
Thus, the Central and State Governments became equal shareholders in GSTN.
| Shareholder | Shareholding after Conversion |
|---|---|
| Central Government | 50% |
| State Governments | 50% |
| Total Government Ownership | 100% |
Exam Point: GSTN is now a wholly Government-owned company with equal shareholding between the Central and State Governments.
Key Points
- GSTN stands for Goods and Services Tax Network.
- GSTN is a non-profit organisation.
- It provides a centralised and secure portal for GST administration.
- GSTN helps tax authorities monitor transactions.
- Taxpayers use the portal for filing GST returns and managing tax obligations.
- The GSTN software was developed by Infosys Technologies.
- GSTN operates on IT infrastructure maintained by the National Informatics Centre (NIC).
- The authorised capital of GSTN is ₹100 million.
- Initially, the Central Government held 24.5% of GSTN shares.
- State Governments initially held 24.5% of the shares.
- Non-Government financial institutions initially held 51% of GSTN.
- HDFC and HDFC Bank held 20%, ICICI Bank 10%, NSE Strategic Investment 10%, and LIC Housing Finance 11%.
- GSTN was later converted into a wholly Government-owned company.
- The Central and State Governments now have equal shareholding in GSTN.
Quick Revision Summary
The Goods and Services Tax Network (GSTN) provides the centralised and secure technology platform for GST administration. Its software was developed by Infosys Technologies, while the IT infrastructure is maintained by the National Informatics Centre (NIC). GSTN has an authorised capital of ₹100 million. Initially, the Central and State Governments each held 24.5%, while non-Government financial institutions held 51%. GSTN was later converted into a wholly Government-owned company with equal shareholding between the Central and State Governments.