What is GSTN (Goods and Services Tax Network)?

The Goods and Services Tax Network (GSTN) is a 100% Government owned enterprise. It manages the entire IT system of the GST portal, which is the mother database for everything GST. The government uses this portal to track every financial transaction and provide taxpayers with all services – from registration to filing taxes and maintaining all tax details.

Structure of GSTN

The Union Government owns a 50% share in the GSTN jointly with State Governments & UTs.The authorised capital of the GSTN is Rs 10 crore (US$1.18 million), of which 50% of the shares are divided equally between the Central and State governments.

The GSTN has also been approved for a non-recurring grant of Rs 315 crores. The contract for developing this vast technological backend was awarded to Infosys in September 2015. The GSTN was first chaired by Mr Navin Kumar, an Indian Administrative Service (IAS) officer (1975 batch), who has served in many senior positions with the Government of Bihar and the Central Govt.

Salient Features of the GSTN

The GSTN is a complex IT initiative. It establishes a uniform interface for the taxpayer and also creates a common and shared IT infrastructure between the Centre and States.

• Trusted National Information Utility

The GSTN is a trusted National Information Utility (NIU) that provides a reliable, efficient, and robust IT backbone for the smooth functioning of GST in India.

• Highly Scalable and Secure Technology Platform:

The GST System has been developed on an Open Source technology platform. This strategy provides for seamless interchange of information between diverse systems. It ensures high availability, fault tolerance, and data security, employing multi-tier design to protect sensitive data both in transit and at rest. The platform also supports a horizontal scaling approach, allowing for increased capacity by adding hardware without affecting user experience.

• Handles complex transactions

GST is a destination-based tax. The adjustment of IGST (for inter-state trade) at the government level (Centre & various states) is extremely complex, considering the sheer volume of transactions all over India. A rapid settlement mechanism amongst the States and the Centre is possible only when a strong IT infrastructure and service backbone captures, processes and exchanges information. Please read our article to know more about how the Centre and the States will settle IGST.

• Efficient Stakeholder Integration and Collaboration:

The GST system integrates external entities such as banks, RBI, GST Suvidha Providers, and other stakeholders via an open architecture and well-defined APIs. This platform-driven approach facilitates seamless data interchange, helping improve tax compliance and transparency while reducing information asymmetry and transaction costs.

• All information will be secure

The government has strategic control over the GSTN, as it is necessary to keep the information of all taxpayers confidential and secure. The Central Government has control over the composition of the Board, mechanisms of special resolution and shareholders agreement, and agreements between the GSTN and other state governments.

• Focus on Continuous Improvement and User-Friendliness:

GSTN prioritises enhancing taxpayer interaction by continuously improving the system to handle more users, improve load management, and refine user experience. This includes the development of offline tools, mobile apps, and AI/ML-driven business intelligence services, aiming to simplify compliance-related activities for taxpayers and provide pre-filled return forms for easier filing.

Functions of GSTN

GSTN is the backbone of the common portal, which is the interface between the taxpayers and the government. The entire process of GST is online, starting from registration to the filing of returns. As on 31st March, 2025 It supports about 23.58 billion invoices and the subsequent return filing for 15.1 million taxpayers. The GSTN handles:

• E-invoicing
• Returns
• E-way Bill
• Registrations
• Payments & Refunds

What is the GSTIN?

The Goods and Services Tax Identification Number (GSTIN) is the unique number each taxpayer receives once registered on the common portal. It is based on a taxpayer’s PAN. 

How can Clear help you?

Clear GST is a user-friendly, easy-to-use platform for GST compliance. It is an all-in-one cloud platform that can easily be integrated with all existing accounting software. Clear’s advanced technology can help you stream your raw General Ledger (GL) data directly for tax reporting.

The platform enables PAN-level filing from GSTR-1 to GSTR-9C with 200+ validations automatically applied to flag ingestion errors. You get actionable insights post-reconciliation to address discrepancies on IMS with minimal effort. It also helps you auto-calculate ITC and populate Table 4 in GSTR-3B across entities.

Related articles:

• GST Rates & HSN Code
• GSTR 1: Return Filing, Format, Eligibility & Rules
• GST News, Notifications & Announcements