Integration of central and state indirect taxes

The government has approved a proposal to set up an IT platform to integrate central and state indirect tax regime in the context of implementation of Goods and Services Tax (GST).

The integration is required for GST implementation as one requires a strong IT Infrastructure and service backbone to enable capture, processing and exchange of information among various stakeholders be it tax payers, central and states governments, banks and RBI.

The government has approved creation of a Special Purpose Vehicle to be called Goods and Services Tax Network (GSTN SPV) which would primarily be responsible for implementation and sustenance of the GST IT Infrastructure. The GSTN SPV would host a portal that could be shared by all the states and center and which will act as an IT platform to integrate central and state indirect tax regime.

The integration of central and state indirect tax regime would benefit the tax payers by providing them standard and uniform interface. It would also assist in creating a national level 'Unique and Shared” Tax Payer registration database.