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States and Centre reached consensus regarding the IT network of GST

States and Centre reached consensus regarding the IT network of GSTAt least one aspect of the GST or goods and Service Tax was found where an agreement could be reached by the Centre and States.

The position paper of the Centre regarding IT network of the proposed tax regime has been accepted by the state finance ministers’ empowered committee.

The mentioned paper has been designed by Nandan Nilekani, chairperson of Unique Identification Authority of India.

In it there is a vivid description of the functional operation of IT and its way of operation. According to an official of the finance ministry that position paper was approved by state finance ministers.

The official further said that states like Gujarat had expressed some doubts regarding it but the Centre got the permission to go ahead with it.

Gujarat voiced its opinion saying that several states are having massive Information and Technology infrastructure and they don’t need to duplicate that.

For the sake of GST the online tax payment application of the Centre will be tailored. The complex processes in systems of the advanced states like Andhra Pradesh, Maharashtra and Gujarat will possibly be tweaked to make them simpler.

This step can ensure that uniformity across states can be reached.

The government will be floating a SPV or special purpose vehicle for implementing IT infrastructure in Goods and service Tax regime.

The stakeholders of this SPV named GST-N are the Central Government, states and National Securities Depository Ltd, the technology partner. The SPV will be testing the tax platform boundary of the government with the software of the taxpayers for the first time.

Center’s system, compared to states will also be tested. Businesses which are running without computers will have facilitating centers. Work on different processes through this has already started.