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Browse Law School Education Taxation Demystifying Goods and Services Tax (GST)

GSTN stands for Goods and Services Tax Network. It is the backbone and a technology backbone of GST. 

GST has not just brought about a tax reform, it has also brought about a technology reform. There is least interaction required between the taxpayer and the tax department and almost all interaction happens through the technology backbone. 

GSTN is the platform for interaction between the tax department and the taxpayer. All returns have to be filed, all payments have to be made, all interactions have to be made between the tax department and the taxpayer through this system. 

In fact, any application for advance ruling also has to be made through this mechanism. The idea is to ensure that there is least interface between a departmental officer and the taxpayer. And also technology can simplify things. 

The purpose of GSTN is also really large insofar as policy making is concerned. The policy makers can derive useful insights. The data generated by GSTN will also influence the policymakers in examining the minute aspects of economy and using the data in order to prioritise consumption and also to discourage consumption depending upon the policy needs. 

In fact, the data will also be used by tax analytics experts in order to identify the areas for evasion and also to correlate wherever the taxes are collected but not paid to the government and to find out other loopholes in the economy and in the tax system. 

In short, GSTN is not just a technology interface, it is also a mechanism which will give direction to the economic outlook.