GST System

A GST Practitioner is a registered person, who is authorized/approved by the GSTP to furnish information on behalf of taxpayers to the government.

GSTN provides a separate user ID and password to GSTPs to enable them to work for their clients without needing their personal login credentials.

They can perform all tasks permitted under GST law. A taxpayer may change their GSTP anytime by deselecting the existing one and choosing a new practitioner on the GST Portal.

Tasks performed by GST practitioners include:

• Assisting with GST registration applications, amendments, or cancellations.
• Preparing and filing monthly, quarterly, or annual returns like GSTR-3B, GSTR-1, and GSTR-9.
• Filing refund claims or making tax payments for registered persons.
• Representing taxpayers before GST officers, appellate authorities, or the Tribunal.

The Central Board of Indirect Taxes and Customs (CBIC) is part of the Department of Revenue under the Ministry of Finance, Government of India. It formulates policies for levy and collection of Customs, Central Excise duties, and Service Tax, prevents smuggling, and manages matters related to Customs, Excise, Service Tax, and Narcotics.

CBIC plays an active role in drafting GST law and procedures, especially CGST and IGST laws, which are under the Centre’s jurisdiction.

It is responsible for administering CGST and IGST laws and continues to collect excise duty on five specified petroleum products and tobacco products.

A GST Suvidha Provider (GSP) is an initiative under the GST framework to simplify compliance. The Government of India has appointed 34 GSPs to support taxpayers.

GSPs develop applications to enable seamless interaction with the GST Network (GSTN), a non-profit body established in 2013 to manage GST data.

Through GSP platforms, companies can file GST returns, with data transmitted directly to GSTN. GSPs act as a bridge between GSTN and taxpayers, helping with compliance. While they cannot read or alter sensitive data, they use APIs provided by GSTN to offer enhanced services.

Banks are crucial for GST collection and maintenance. The remitter’s bank must ensure correct CPIN entry in NEFT/RTGS messages, inform UTR to the taxpayer, and transfer amounts to RBI.

Functions of banks include:

• Accepting GST payments through customized systems.
• Providing acknowledgments to taxpayers.
• Clearing instruments via the clearinghouse and updating records.
• Crediting amounts to GST pool accounts or directly into government accounts as per challan details.

The Reserve Bank of India (RBI) acts as the aggregator for accounting GST collections into government accounts.

Agency banks that collect GST report these to the RBI for settlement. RBI also facilitates direct GST payments into government accounts using NEFT/RTGS, ensuring smooth payment processing.

The Goods and Services Tax Council is a joint forum of the Centre and States, established on 15 December 2016 after provisions came into effect in September 2016.

The GST Council makes recommendations on:

• Taxes, cesses, and surcharges of the Union, States, and local bodies that may be subsumed in GST.
• Goods and services to be subjected to or exempted from GST.
• Procedures for performing its functions.

The Goods and Services Tax Network (GSTN) is a non-profit, non-government organization providing shared IT infrastructure and services to central and state governments, taxpayers, and stakeholders.

GSTN enables services like registration, return filing, and payments, serving as the primary interface between government and taxpayers in the GST system.

The Accountant General of State performs functions such as:

• Receiving daily and monthly Put Through Statements from CAS, RBI.
• Receiving verified Datewise Monthly Statements (DMS) from e-PAOs and e-treasuries of the State.
• Reconciling both sets of data.

Every person with a turnover above ₹20 lakhs must register under GST.

All registered persons are required to:

• Self-register.
• Upload details.
• File returns and make online payments.
• Apply for refunds, etc.