GST & its Functions

It is a Section 8 (under new companies Act, not for profit companies are governed under section 8), non-Government, private limited company. It was incorporated on March 28, 2013.The Company has been set up primarily to provide IT infrastructure and services to the Central and State Governments, tax payers and other stakeholders for implementation of the Goods and Services Tax (GST).

The Government of India holds 24.5% equity in GSTN and all States governments, including NCT of Delhi and Puducherry, and EC, together hold another 24.5%. Balance 51% equity is with non-Government financial institutions.


Empowered Group on IT Infrastructure with following members:

  • Member (B&C), CBEC
  • Additional Secretary (Revenue), DoR
  • DG (Systems), CBEC as Member-Secretary
  • FA, Ministry of Finance,
  • Member Secretary, Empowered Group of State Finance Ministers,
  • Member Technology Advisory Group for Unique Projects (TAGUP)
  • Commercial Tax Commissioners of Maharashtra, Assam, Karnataka, West Bengal and Gujarat.


India’s GSTN structure:

Putting in place a robust IT network is an absolute must for implementation of GST. A Special Purpose Vehicle called the GSTN is being set up to cater to the needs of GST. The GSTN shall provide a shared IT infrastructure and services to Central and State Governments, taxpayers and other stakeholders for the implementation of GST.

The GST System Project is a unique and complex IT initiative. It is unique as it seeks, for the first time to establish a uniform interface for the taxpayer and a common IT infrastructure between the Centre and States governments. Currently, the Centre and State indirect tax administrations work under different laws, regulations, procedures and formats and consequently the IT systems work as independent sites.

eIntegrating them for GST implementation would be complex since; it would involve integrating the entire indirect tax ecosystem to bring all the tax administrations (Centre, State, and Union Territories) to the same level of IT maturity with uniform formats and interfaces for taxpayers and other external stakeholders.Inter- state trade of goods and services (IGST) would need a robust settlement mechanism amongst the States and the Centre.