New IT network proposed for payment of indirect taxes | SupportBiz


New IT network proposed for payment of indirect taxes

Goods and Service Tax Network (GSTN)

In an effort to integrate the central and state indirect taxes regime, India is currently creating a Goods and Service Tax Network (GSTN)  for the same.

Finance Minister Pranab Mukherjee confirmed this, while at an investiture ceremony for the discussion of the Presidential Award of Appreciation Certification to customs and central excise officers, according to a report in The Economic Times.

The state governments have cleared the proposal for the IT network, GSTN, and now Mukherjee is taking the proposal to the centre for approval.

This move has been initiated to help both tax- payers and authorities maintain an organized structure. The GSTN has the potential to replace the current indirect taxes including service tax, value-added tax and excise duty. 

PAN cards will be used to provide a tax identification number that will allow traders to access and pay their taxes from anywhere in the country through the GSTN system.

Mukherjee is also hopeful of the GSTN helping boost tax revenue within states and the centre.

The one thing crucial to the implementation of the GSTN throughout the country will be adequate IT infrastructure.