Goods and Services Tax Network (GSTN)

Abstract

Introduction – In India’s economic history, the Goods and Services Tax (GST) is acclaimed as one of the most significant tax reforms, substantially altering the country’s indirect taxation system. The term “electronic role of GST” refers to the adoption of technologies, digital platforms, and real-time data interchange to streamline each step of the GST process, involving registration, return filing, invoice matching, and the payment of taxes. 

Purpose – This case explores the electronic role of GST, emphasizing its impact on tax administration, enterprises, and general economic growth. It explores how technological advances have minimized manual inputs, reduced paperwork, and averted evasion of taxes procedures. Overall, this research contributes to the ongoing discourse surrounding tax digitization and sheds light on the challenges and opportunities of leveraging technology to facilitate a more efficient, inclusive, and robust tax ecosystem in India.

Research Design – Mixed research approach is used to learn more about how enterprises, consumers, and tax authorities view and experience the electronic implementation of GST. Random sampling was used to choose a representative sample of taxpayers and enterprises from various industries and geographical areas. In-depth information about the difficulties, advantages, and overall impact of GST on electronic transactions and compliance were gathered through a semi-structured questionnaire.

Conclusion – To sum up, the electronic role of GST has revolutionized tax administration and compliance procedures, ushering in a new era of efficiency and transparency in the world of taxation. To fully utilise the potential of electronic GST for sustainable economic growth and development, regulators and tax authorities require adaptation to these modifications as digital technologies continue to advance.

Keywords:- GST, E-GST, E-invoicing, GSTN, Technology.

1. Introduction

It has been five years since the Goods and Services Tax (GST) system came into effect. The GST was established to address the outdated issues surrounding double taxation, an inadequate revenue source and collection, and the ease of doing business through the introduction of a simpler tax structure. The successful implementation of GST depended greatly on the integration of electronic systems, in addition to its primary goals of fostering a common market and improving the convenience of conducting business. A fundamental shift in the design of record keeping has occurred with a transition from the era of pre-authenticated excise bills to electronic invoicing and real-time reporting of transactions under GST. In parallel to businesses’ great flexibility during the pandemic, the year 2020 saw the successful implementation of India’s electronic invoice system by the government and businesses. Interoperability between two government portals, the GST return portal and the Invoice Registration Portal (IRP), that are employed for transaction reporting and e-invoice validation and signing, was tested with the implementation of e-invoicing.

The digitization of the supply chain, which was not as apparent at the time but is now, was ignited by GST. E-way bills were created at first for monitoring the movement of goods across the country. E-invoicing, as its name implies, was designed to digitize billing, the first stage in record-keeping.

The study starts off by providing a general review of the GST structure while emphasising its most important elements, including the GSTN (Goods and Services Tax Network), the E-Way Bill System, and the online GST site. It examines the critical role of technology in facilitating seamless tax filing, invoice matching, and real-time data sharing between taxpayers and the government. Then the case delves deeply into the electronic function of the Goods and Services Tax (GST) in India, offering light on the revolutionary impact of digital technology on the country’s tax system by addressing how e-invoicing and e-way bills pertain to GST and what advantages and shortcomings they entail. This study presents a comprehensive exploration of the electronic impact of GST in India throughout its implementation, drawing on sources from the government, scholarly literature, and empirical findings.

In India, expanding e-invoicing to more companies and different sorts of invoices will only take a matter of time. Overall, this research contributes to the ongoing discourse surrounding tax digitization and sheds light on the challenges and opportunities of leveraging technology to facilitate a more efficient, inclusive, and robust tax ecosystem in India.

2. Theoretical Background of the Case

A significant indirect tax reform known as the Goods and Services Tax (GST) was implemented in India on July 1st, 2017. In order to provide a uniform and straightforward tax system, it replaced numerous indirect taxes imposed by the central and state governments. GST created a unified tax system for all commodities and services, making doing business easier, minimizing tax cascading, and creating a single national market. By streamlining tax administration and enhancing revenue collection, the introduction of GST represented a crucial turning point in India’s tax history. As a result of the introduction of the GST regime, there is now a dual structure, with the ability to impose GST on goods and services held by both the Central and state governments.

Integration with electronic systems and technology-driven solutions has played a pivotal role in the success of the GST system. One of the most important aspects of the reform was the introduction of electronic technologies and digital solutions for GST administration. The electronic role of GST in India has enabled businesses and taxpayers to undertake tax-related activities seamlessly and efficiently, transforming the way taxation is conducted in the country. GST’s electronic role sought to use technology to strengthen tax administration, minimise compliance burdens, and reduce tax evasion. The electronic implementation of GST in India entails a number of initiatives aimed at leveraging digital infrastructure to make tax procedures efficient, transparent, and easy.

2.1 Reasons for Implementing GST

1. To combat tax evasion- As part of its ongoing effort to combat tax evasion, the Indian government is continually changing the regulations governing the Goods and Services Tax. In response, the government determined in October 2020 that businesses with a turnover of more than Rs 500 crores will have to produce electronic invoices for their B2B transactions.
2. For invoice standardisation- The government has eased the invoice management process by requiring e-invoicing for all companies with a revenue over Rs. 20 crore. The goal was to standardise invoices for machine reading and interoperability between business and compliance environments. As a result, data reconciliations, e-way bill creation, invoice reporting, accounts receivables management, and GST return filing are now more effective.
3. To reduce man work- The cut in labour hours needed for data entry and reconciliations in comparison to conventional paper-and-pencil accounting methods is another substantial advantage of e-invoicing. With just a single click, taxpayers can now rectify data or lodge GST returns. There is no demand for manual data entry in their books of accounts, GST reports, or when generating e-way invoices. Data across numerous diverse ecosystems is automatically logged in from a common source of data entry.
4. Transparency and Accountability- For instance, digital invoice discounting offers businesses a fast influx of cash. Transparency and accountability have never been higher thanks to the implementation of the GST and e-invoicing. Small businesses receive speedier access to funds, lending institutions find the verification procedure to be simpler, and large businesses are more willing to invest their treasury capital.

2.2 Exemptions for E-invoicing under GST

• Insurer or a banking company or a financial institution, including an NBFC
• Registered person supplying passenger transportation services
• Goods Transport Agency (GTA)
• Registered person supplying services by way of admission to the exhibition of cinematographic films in multiplex services
• SEZ unit (excluded via CBIC Notification No. 61/2020 – Central Tax)

2.3 Key Milestones in the History of Electronic GST in India

1. GSTN – The Goods and Services Tax Network (GSTN) was established as a private limited company in 2013 and is a not-for-profit organisation. GSTN was entrusted with designing and maintaining the technology infrastructure required for the effective implementation of GST. It is a resilient technological platform that makes it possible for banks, tax authorities, and taxpayers to exchange information in real-time. It guarantees real-time data accessibility and facilitates online registration, return filing, payment, and refund claims for taxpayers.
2. The GST portal – It was introduced in 2017 in advance of the implementation of the GST to make it easier for taxpayers to register, file returns, pay taxes, and conduct other GST-related business online. Accessible to taxpayers and tax officials, the portal has since become the focal point for all GST-related activities.
3. E-Filing and E-Payment: By filing GST returns electronically (or “e-filing”), taxpayers can submit their tax-related paperwork digitally, eliminating their dependency on conventional paper-based procedures. GST e-payment enables taxpayers to pay their taxes online using a variety of methods, including internet banking, debit cards, and credit cards.
4. E-Way bill: The electronic waybill (e-way bill) system was launched in 2018 to make it easier for commodities to move freely across state borders. It was created to ensure that goods in transit were accompanied by the appropriate documentation, which was generated electronically, thereby streamlining the process of verifying the movement of goods. It facilitates seamless cross-state transportation of products and supports effective tax administration and compliance.
5. Electronic Invoice: Starting in January 2020, a limited group of taxpayers were given access to the idea of electronic invoicing (or e-invoicing). The idea of electronic invoicing was developed by the government to standardise and digitise the invoicing procedure. It aids in reducing errors, eliminates the need for manual data entry, and improves the precision of data.
6. Data Analytics and Artificial Intelligence: The GSTN employs data analytics and artificial intelligence to analyse the massive quantities of data generated by GST transactions. This enhances compliance, identifies possible tax evasion instances, and increases revenue collection.
7. Blockchain Technology: India has been investigating the possible application of blockchain technology to improve the security and transparency of GST transactions. Blockchain has the potential of generating an unchangeable and impenetrable record of GST transactions, assuring data integrity and reducing fraud.

2.4 Role of Government in Implementation of Electronic GST

• To encourage residents and consumers to request legitimate invoices from merchants, the Government is working to implement the invoice incentivization programme, also known as the “Mera Bill,Mera Adhikar” initiative (especially those who cater predominantly to the B2C market).
• The Government recently selected five additional invoice registration portals (IRPs) in June 2022 to offer taxpayers a seamless e-invoice production experience.
• The Government is putting together a structure that will enable data triangulation while also constantly investing in strengthening systems and procedures. The integration of the GST and income tax databases, for instance, facilitates verification of transactions reported on either platform. GSTR1 filings are being compared to the data entered into Form 26AS. FASTag data is realigned with e-way bill files. Making Aadhaar verification required will aid in creating a single point of reference for the government’s various databases. With time, information sharing with the buyer, in particular for input tax credits, is becoming extensive and real-time.
• On the analytics front, the Government has created network visualisations across the nation to enhance traceability of transactions through various supply chains.

2.5 Recent Amendments in the GST Act

1. In 2020, the Indian government imposed that a specific group of taxpayers issue invoices in an electronic and standardised format on the Invoice Registration Portal (IRP). The e-invoicing requirement, with a few exceptions, now applies to taxpayers with a turnover of more than Rs. 10 crore as opposed to the earlier limit of Rs. 500 crore.
2. The creation of electronic invoices was formerly not time-limited. The most recent recommendation states that taxpayers with an annual aggregate turnover (AATO) of at least Rs. 100 crore would not be permitted to declare invoices that are more than seven days old as of the reporting date. The reporting of bills to the IRP must now be done within seven days, which is a new constraint. Here, it’s crucial to emphasise that debit and credit notes are not included in the scope of this temporal restriction; rather, it only relates to the document type “invoices.” To ensure prompt compliance and prevent the backdating of e-invoices, the new seven-day time restriction was introduced and will take effect on May 1, 2023.
3. On 10^th may,2023, the sixth step of e-invoicing was informed by CBIC. Therefore, starting on August 1, 2023, taxpayers with a 5 Cr+ turnover in any fiscal year starting in 2017–18 must issue electronic invoices.
4. A reduction in the e-invoicing turnover limit to Rs 5 Crore was announced by the Central Board of Indirect Taxes (CBIC) in Notification No. 10/2023-Central Tax, dated May 10, 2023, as an amendment to Notification No. 13/2020-Central Tax, dated March 21, 2020. The amendment is set to go into effect on August 1, 2023. As an outcome, starting on August 1, 2023, the issuance of electronic invoices for business-to-business (B2B) supply would be required for all taxpayers with an annual aggregate revenue beyond Rs 5 Crore in any year starting in 2017–18.
5. In 2020, the Indian government imposed that a specific group of taxpayers issue invoices in an electronic and standardised format on the Invoice Registration Portal (IRP). The e-invoicing requirement, with a few exceptions, now applies to taxpayers with a turnover of more than Rs. 10 crore as opposed to the earlier limit of Rs. 500 crore.
6. The creation of electronic invoices was formerly not time-limited. The most recent recommendation states that taxpayers with an annual aggregate turnover (AATO) of at least Rs. 100 crore would not be permitted to declare invoices that are more than seven days old as of the reporting date. The reporting of bills to the IRP must now be done within seven days, which is a new constraint. Here, it’s crucial to emphasise that debit and credit notes are not included in the scope of this temporal restriction; rather, it only relates to the document type “invoices.” To ensure prompt compliance and prevent the backdating of e-invoices, the new seven-day time restriction was introduced and will take effect on May 1, 2023.
7. On 10^th may,2023, the sixth step of e-invoicing was informed by CBIC. Therefore, starting on August 1, 2023, taxpayers with a 5 Cr+ turnover in any fiscal year starting in 2017–18 must issue electronic invoices.
8. A reduction in the e-invoicing turnover limit to Rs 5 Crore was announced by the Central Board of Indirect Taxes (CBIC) in Notification No. 10/2023-Central Tax, dated May 10, 2023, as an amendment to Notification No. 13/2020-Central Tax, dated March 21, 2020. The amendment is set to go into effect on August 1, 2023. As an outcome, starting on August 1, 2023, the issuance of electronic invoices for business-to-business (B2B) supply would be required for all taxpayers with an annual aggregate revenue beyond Rs 5 Crore in any year starting in 2017–18.

3. Research Objectives of the Case

1. To explore the importance of the electronic role of GST in India.
2. To determine whether the use of technology driven GST resulted in cost-cutting advantages for end users.
3. To examine the role of Government in the implementation of E-GST.
4. To identify the challenges faced by businesses and the administrators in adopting electronic GST processes.
5. To analyse taxpayer’s perception of the electronic GST system.

3.1 Data and Methodology

Research methodology refers to the particular steps or methods used to find, choose out, organise, and evaluate data on a subject. The methodology part of a research report gives the reader the chance to examine a study’s overall validity and reliability.

3.1.1 Research Design

This research study seeks  to find information about the Electronic role of GST  in India. The study used a mixed approach research design involving both qualitative and quantitative approach. Using a qualitative approach ,it allows the researcher to collect the data from the natural settings through which findings will be based on the meanings provided by the sample group. The research will be descriptive and exploratory in nature.

3.1.2 Universe of study

The research study involves the analysis of sample of  two groups. First group consisting end users and second group consisting implementing agency, selected through random sampling.

3.1.3 Locale of study

Locale of the study is where the research chooses to lead its exploration or gathers data from. The locale of the study is all the areas in India.

3.1.4 Sample size

Simple random sampling is a technique where every item in the population has an even chance and likelihood of being selected. Data will be collected from two groups. To collect trustworthy information, separate sets of questionnaires were created. One questionnaire was created to collect data from end users which included people who were involved in B2B and sample size was around 100 participants. Second questionnaire was created to collect data from the implementing agency which involved government officials and the sample size for this group is 50.

3.1.5 Data Collection

The primary data was collected from different categories from India. Based on the literature, data was collected through a well structured likert scale questionnaire and with the help of open ended questions. Feedback collected from the participants were then reviewed and analysed based on the research objectives..

3.1.6 Data Analysis

The collected data was then analysed through thematic analysis  and descriptive statistics to identify, organise and visualise the most reliable information to inform the findings and recommendations. The thematic analysis involves identifying common themes present in the collected data and uses them in establishing patterns of meaning.

4. Data Analysis

The findings of our data analysis on the Impacts and implications of electronic application of the Goods and Services Tax (GST) in India are presented in this section. With a mixed-methods approach, the study combined quantitative data from structured surveys and qualitative insights from questionnaires given to taxpayers and GST administrators.

To provide a comprehensive picture of the survey data, descriptive statistics using SPSS were generated. Measures including mean, median, standard deviation, and range were computed for pertinent variables in the quantitative survey data.

To understand businesses’ and tax administrators’ experiences with the electronic GST system, qualitative data was gathered. The results received from the survey were evaluated through a thematic analysis. Positive, neutral, and negative opinions were noted, and common themes pertaining to user experiences were derived.

The questionnaire gathered 150 responses from Indian taxpayers and administrators from different sectors and geographical areas. In order to ensure the smooth operation of the electronic GST system, the research emphasises the need for ongoing investments in digital infrastructure. Addressing the issues brought up by the taxpayers during the interviews might enhance user satisfaction and boost compliance rates. Furthermore, conducting awareness campaigns and training activities can help smaller businesses employ the electronic GST system efficiently.

Analysis of the data showed that e-filing and electronic invoice generation have helped businesses save a lot of money on costs linked to paperwork. The data study also provides insightful information about how AI and blockchain technologies are viewed and could potentially affect GST in India. When assessing the readiness for technological integration, considerations such as stakeholder awareness, perceived benefits, challenges, and feasibility are crucial.

It is essential for organizations to have clear and consistent data verification processes in place, regardless of the chosen method.54% validate their data by using the receipt of goods as a method of verification. These respondents rely on the physical receipt of goods to confirm the accuracy of the data associated with the transaction, such as quantity, quality, and pricing.24% use the purchase order as a method of validation for their data. These respondents cross-check the information on the purchase order against the actual goods received or other documents to ensure that the data aligns with the initial order. 22% of respondents prefer to validate their data by physically inspecting the goods.These respondents visually inspect the received goods or conduct quality checks to verify the accuracy of the data associated with the transaction. Regular data reconciliation and error-checking can contribute to higher data accuracy.

It is important to recognise that our study has several limitations. The data analysis mostly concentrated on short- to medium-term effects, leaving room for additional research on long-term ramifications because the interview sample size was very small. Some of the most common problems mentioned by respondents were challenges with technology at initial stages and challenges with adapting to the digital environment. Smaller enterprises in particular have drawn attention to the need for assistance and instruction in navigating the computerized GST policy.

5. Empirical Results and Interpretations

The finding is related to inferences made concerning the primary research question, the benefits of E-GST in India, for which the survey was conducted. The data was collected from 100 respondents, of which 72 were men and 28 women. The questionnaire was designed for distribution to end users. Just 2 percent of the overall respondents indicated they had little to no understanding of the E-invoicing, whilst around 66% stated they were extremely familiar with the idea. When asked if they encountered any challenges as taxpayers, 92% of respondents answered not at all, whereas the remaining 8% expressed suggestions and concerns including:-

• The site is too busy and takes many times to login.
• Portal should be accessed more easily.
• Bills should be allowed to cancel easily after being uploaded on the server.
• Data privacy should be given more priority.
• If a business uses electronic invoicing, why would it need electronic billing?
• There is a certain failure rate for the system. The failure rate for creating invoices is around 15-20%, so if we create 1000 invoices a day, only 800 will be successful; the remainder will need to be attempted later.

A seamless and satisfactory user experience fosters a sense of trust in the system, making users feel more secure while interacting with the portal. It was interpreted that majority of the respondents agreed that the portal presents a sense of security and validation while  uploading data in a secure manner. The analysis suggests that the majority of respondents find the GST portal’s interface easy to navigate and use. The portal’s user-friendly design likely contributes to a smooth and hassle-free user experience, making it more accessible to users. The analysis suggests that the GST portal has simplified the registration process, making it straightforward and easy to understand for most respondents. A simplified registration process reduces the time and effort required for users to complete the registration, leading to higher satisfaction rates. The data analysis indicates that the IRP has simplified the process of uploading invoices compared to traditional methods. The IRP’s user-friendly interface and straightforward steps for uploading invoices have resulted in a positive user experience for the majority of respondents.  The fact that 60% of respondents reported benefiting from the second portal suggests that it has been successful in providing value to a significant portion of users. The second portal might have offered new services, improved efficiency, or addressed specific needs, leading to positive outcomes for the majority of respondents. The data analysis indicates that a portion of respondents (17%) did not find any benefit from using the second portal. The respondents who denied any benefit might have encountered issues with the portal’s functionality, features, or services, leading to their negative perception. Proper communication and education about the portal’s offerings are essential to ensure users understand its benefits fully. The data analysis shows that a significant majority (70%) of respondents have embraced electronic signatures due to their convenience and efficiency. Electronic signatures are becoming increasingly popular as a preferred method for signing documents, indicating a positive shift towards digitalization. It is indicated that a small percentage (7%) of respondents faced hurdles when using electronic signatures. The hurdles might be related to technical issues, lack of familiarity with e-signature platforms, or concerns about legal validity. The data analysis suggests that the 90% respondents recognize the benefits of technology in making GST processes more efficient and automated. Technology streamlines tax-related tasks, reducing manual efforts and the likelihood of errors, leading to smoother operations. Digital solutions expedite data handling, allowing businesses to meet GST deadlines promptly and access real-time financial insights. It was also analysed that some respondents are neutral or disagree with technology involvement due to concerns about data security, technical issues, or a preference for traditional methods. The data analysis suggests that 68 respondents have experienced cost-cutting benefits through technology-enabled GST. Automation and digitization can minimize paperwork, printing, and storage costs, contributing to overall cost savings.  It is suggested that there is a need for increasing awareness and education about the potential cost-saving benefits of technology-enabled GST processes for 13% who are facing challenges in availing benefits.

The inferences made from the responses of the second set of questionnaires designed for Implementing agency is as below. The data was collected from 50 respondents in total where 45 were male and 5 females.

• 44 respondents (approximately 88%) were very to extremely familiar with the concept of e-invoicing.
  6 respondents (approximately 12%) had little to no knowledge about e-invoicing

Interpretation: The majority of respondents in this group possess a comprehensive understanding of e-invoicing, indicating that they are well-versed with the technology, processes, and implications of using e-invoices in GST implementation. Despite the majority being familiar with e-invoicing, there are still some respondents 12% with little to no knowledge. There is an opportunity for further education and awareness campaigns to encourage these respondents and others to adopt e-invoicing practices.

• 38 respondents agreed that the economy has become more digitized and standardized after implementation of E-GST.
  12 respondents were uncertain if the involvement of technology has any role in digitization of economy.

Interpretation: The adoption of e-GST has likely facilitated the transition from traditional, paper-based processes to digital methods for tax compliance and reporting. The uncertainty among this group of respondents might be due to a lack of awareness, insufficient data, or difficulty in assessing the extent of digitization and standardization in the economy.

• 33 respondents think that E-way bill is effective to monitor the flow of goods and reduce tax evasion.
  17 respondents are unsure of the abovesaid statement.

Interpretation: The implementation of the e-way bill system has likely improved the tracking and verification of goods during transit, making it harder for tax evaders to evade taxes on the movement of goods. This uncertainty could be due to various factors, such as challenges in measuring the precise impact of the e-way bill system on tax evasion or the need for more data and analysis to make a conclusive determination.

• 15 respondents are in favour that implementing technological tools will help in combating tax evasion.
  35 respondents have mixed opinions regarding the same.

Interpretation: The 15 respondents are optimistic about the potential of technology to enhance tax enforcement and reduce tax evasion through improved monitoring and data analytics. The other 35 respondents may have reservations or doubts about the effectiveness of technological interventions in curbing tax evasion or may lack sufficient information to form a conclusive opinion.

• 39 respondents are sure that businesses have necessary tools to run e-invoice smoothly.
  06 respondents were in complete denial regarding availability of tools with business.

Interpretation: The majority of respondents are confident that businesses are adequately equipped with the necessary tools and resources to ensure the effective implementation and operation of the e-invoice system. The 6 respondents express strong scepticism or disagreement about the availability or adequacy of tools for businesses to support the e-invoice system.

• 28 respondents confirmed that possibility of harming and losing crucial data has been reduced.
  11 respondents denied that online assessment of documents didn’t reduce the possibility.

Interpretation: The majority of respondents express confidence that the adoption of online document assessment has led to improved data security and reduced risks of data loss or harm. The respondents who express scepticism or uncertainty about the effectiveness of online document assessment in mitigating data-related risks. Enhancing awareness and education on data protection best practices can empower both groups of respondents to understand their role in safeguarding crucial data.

• 44 respondents were optimist regarding improvement in government’s capacity to track non compliances.
  6 respondents denied any improvement to track non compliances

Interpretation: The majority of respondents believe that digitization has enhanced the government’s capacity to effectively monitor and detect non-compliances with the GST regulations, leading to improved tax enforcement. The remaining respondents express strong dissent, believing that digitization has not brought about significant improvements in the government’s ability to track non-compliances with the GST. Demonstrating transparency in data collection, usage, and reporting can help build trust and confidence in the digitization process among all respondents.

• 34 respondents benefitted from lower issuance and storage costs after utilising E-invoicing
  6 respondents availed no benefits even after the implementation of e-invoicing. 

Interpretation: The majority of respondents , which were 34,  experienced cost savings in terms of reduced issuance and storage expenses by adopting e-invoicing, which typically eliminates the need for paper-based invoicing and physical storage. The 6 respondents did not experience cost savings or other benefits related to issuance and storage expenses despite implementing e-invoicing.

• 44 respondents can access real time data from customers after E-GST implementation.
  6 respondents cannot access real time data from customers even after E-GST implementation.

Interpretation: The majority of respondents have experienced the benefits of E-GST implementation, enabling them to access up-to-date information directly from their customers, which can facilitate better decision-making and more efficient business operations. The rest of the  respondents express that despite the implementation of E-GST, they still face challenges in accessing real-time data directly from their customers, possibly due to system limitations, data integration issues, or other operational barriers.

• 39 respondents confirmed that customer data is secured on their e-invoice system.
  11 respondents were uncertain regarding the safety and security of customer data published on their e-invoice systems.

  Interpretation: The majority of respondents express confidence in the security measures implemented to protect sensitive customer data, suggesting that they believe the data is adequately safeguarded. The uncertain group may have concerns or lack complete information about the measures in place to safeguard sensitive customer data. Educating respondents about data protection best practices and the importance of safeguarding sensitive customer data can enhance their understanding and awareness.

6. Conclusion

The GST process is ever-evolving. It began as a “Good and Simple Tax” that consolidated several rules into one and streamlined the compliance process. With new changes that take use of digitalisation and the upsurge in stronger laws and compliances, it has, nonetheless, developed rapidly in recent years. With the aim to study the impact of technologically driven tax reforms and to uncover possible areas for GST system development, the case seeks to deliver relevant information to tax administrators, researchers, and businesses.

Since its implementation, which has been a full five years ago, both the industry and the government have experienced nothing short of an emotional roller coaster. The use of digital tools for tax administration and the digitization of tax compliances have changed the game and led to efficiency gains over the previous, antiquated system. The creation of the “one-stop-shop” portal “GSTN,” for all compliances, has made this possible. Although there are many benefits to the GST, there remains considerable work to be done in regards to its implementation, particularly to lessen the burden on taxpayers

Additionally, the study found that implementing cutting-edge technology, including blockchain and artificial intelligence, has the potential to improve the GST system even more. The use of AI-driven analytics has increased data accuracy and enabled predictive analysis, improving the government’s ability to estimate tax collections and create targeted policies. Similar to how it has improved the GST framework’s transparency and consistency, blockchain technology has also decreased the chance of tax fraud and corruption. Nevertheless, despite these notable advantages, challenges have also emerged. The shift to the electronic GST system was not without challenges, with some taxpayers initially unable to adjust to the new processes and technologies. Furthermore, concerns have been expressed about data security and privacy, mandating strong protections to secure important taxpayer information.

To realise the full potential of the electronic GST system, policymakers and tax authorities must continue to invest in digital infrastructure, keep up with evolving technology, and actively interact with stakeholders to understand their demands. The public’s acceptability and compliance with the electronic GST system can also be increased by promoting taxpayer knowledge and awareness of its advantages. Routine training and awareness programmes for taxpayers will be significant for ensuring the smooth deployment of automated procedures and reducing noncompliance. In order to facilitate seamless taxpayer registration, return filing, and payment processes, it analyses the significance of a strong IT infrastructure, secure networks, and digital interfaces.

India can reap the benefits of its electronic GST system for years to come with well-informed policies and coordinated efforts from the government and stakeholders.

Continuous research in this field would be necessary to optimise the electronic role of GST in India as technology evolves and new challenges are encountered. The study’s conclusions can be a useful resource for stakeholders, businesses, and policymakers alike, directing them towards utilising technology to fully utilise the GST system and support India’s economic growth and development.

A  new era of Indian taxation marked by efficiency, transparency, and technical developments has begun as a result of the electronic role played by GST. Through harnessing the potential of technology, India has made a lot of progress towards becoming a modern, digitally-enabled tax system that will be able to drive long-term economic growth.

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Questionnaire for End Users (B2B)

Data Analysis

Q3 – Gender

Q9 – Any Issue or Concern as a Taxpayer Regarding E-invoicing

Q11 – Portal presents a sense of security and validation in a secure manner

Q12 – Simple Access to and Navigation through the Portal

Q8 – Familiarity with the E-invoicing System

Q13 – Registration process to be simple and convenient?

Q14 – Simple to upload invoices to the IRP site

Q15 – If the Government’s Opening of the Second Portal has Benefited You

Q16 – E-invoicing gateway can accommodate your needs and requirements

Q17 – Simple to generate GSTIN

Q18 – Signing the documents electronically convenient for you

Q19 – Prefer it when Technology is used in any process/ step of GST

Q20 – Sensible information you publish to the portal is secure and safe

Q21 – E-GST has helped you in any way with regards to cost-cutting

Questionnaire for Implementing Agency

Data Analysis

Gender

Q9 – Educational Qualifications

Statistics

Q11 – Level of familiarity with the e-invoicing system

Q12 – Received training on E-invoicing

Q16 – Any specific issues or concerns raised by taxpayers regarding E-invoicing

Q14 – Involved in E-invoicing implementation and monitoring

Q18 – Economy has become more digitised and standardised

Q19 – E-way bill mechanism was a useful instrument to monitor the flow of goods and prevent tax evasion

Q20 – Registering e-invoices with the Invoice Registration Portal (IRP)?

Q21 – Which ERP system do you use?

Q23 – How do you validate invoice data?

Q22 – Where do companies now have to create e-invoices

Statistics

Q25 – Implementing technological tools has helped or will help in combating tax evasion?

Q27 – Business have the tools necessary to keep the electronic invoicing system running smoothly

Q29 – Possibility of losing and harming crucial data be en reduced for you as a taxpayer as a result of online document assessment

Q30 – Government’s ability to conveniently track non-compliances improved

Q32 – Benefit from lower issuance and storage expenses

Q31 – Fields of the electronic invoice auto-populate

Q33 – Software (electronic invoice platform) in your jurisdictions required to be certified

Q34 – Electronic signature used to sign the electronic invoice

Q36 – Sensitive customer data stored in your current e-Invoicing system is secure

Q35 – Implementation of E-GST allow you to access real-time data from customers

Q38a – Existing System of E-invoicing is Vulnerable to Technical Risk Factors

Q38b – Existing System of E-invoicing is Vulnerable to Functional Risk Factors

Q38c – Existing System of E-invoicing is Vulnerable to Operational Risk Factors

Q41 – Internal stakeholders