GSTN Implements Geocoding Functionality to Enhance Address Accuracy and Tackle Fraud

GSTN Implements Geocoding Functionality to Enhance Address Accuracy and Tackle Fraudulent Activities

The article discusses the recent implementation of geocoding functionality by the Goods and Services Tax Network (GSTN) in India. Geocoding is the process of converting an address or description of a location into geographic coordinates. The implementation of geocoding in the GSTN system aims to ensure the accuracy of address details in the GSTN records and streamline the address location and verification process.

The news surrounding this development is primarily driven by concerns over fake registrations and fraudulent availment of input tax credit under the Goods and Services Tax (GST) regime. By incorporating geocoding, the GSTN intends to enhance the authenticity and reliability of taxpayer information.

Key points about geocoding in the GSTN system include:

1. Geocoding converts addresses into geographic coordinates: Geocoding is a process that translates an address or description of a location into specific geographic coordinates such as latitude and longitude. This enables precise identification and mapping of locations.

2. Purpose of geocoding in GSTN: The introduction of geocoding in the GSTN system aims to improve the accuracy of address details, facilitate address location verification, and streamline the overall process. It is expected to help identify discrepancies and potential fraudulent activities related to input tax credit claims.

3. Geocoding of principal places of businesses: The GSTN has already geocoded 1.8 crore (18 million) principal places of businesses. This includes various categories of taxpayers such as normal, composition, SEZ units, SEZ developers, input service distributors, and casual taxpayers.

4. One-time activity: Geocoding in the GSTN system is a one-time activity. Once the address details are submitted and geocoded, revisions to the address are not allowed. This approach ensures consistency and reduces the chances of manipulation or misuse of the system.

5. Availability of functionality: The geocoding functionality is available for active, cancelled, and suspended taxpayers belonging to different categories. However, taxpayers who have already geocoded their address through new registration or core amendment will not have access to this functionality.

Additionally, the article provides some key facts about the Goods and Services Tax Network (GSTN), which is a nonprofit non-government company registered under Section 8 of the Companies Act, 2013. It serves as a shared IT infrastructure and service provider for both central and state governments, as well as taxpayers and other stakeholders. The GSTN is a collaboration between private players (holding 51% equity) and the central and state governments (holding 49% equity).

In summary, the implementation of geocoding functionality by the GSTN in India's GST regime aims to enhance the accuracy of address details, improve location verification, and address concerns related to fraudulent practices. By geocoding the addresses of businesses, the GSTN seeks to strengthen the authenticity and reliability of taxpayer information in their records.

Thank You