GSTN to Integrate with Account Aggregator System before July 1, 2023

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The Goods and Services Tax Network (GSTN) is all set to integrate with the Account Aggregator (AA) system, a financial data-sharing system before July 1.

The Government of India has unveiled the Account Aggregator System in 2021 as the next digital innovation which could revolutionise investment and credit. Also, it will ease many cumbersome procedures for availing credit for small businesses.

According to the authorities, the integration will allow small firms to permit lenders to access their tax records along with other financial information on a single platform, eliminating obstacles in credit distribution.

Goods and Services Tax Network manages the Information Technology system of the Goods and Services Tax. It assists GST registration, return filings, computation of Integrated Goods and Services Tax (IGST) settlements..etc.

A person can access and share their financial information securely and digitally with any other regulated financial institution in the AA network through an Account Aggregator, an organisation governed by the Reserve Bank of India and licenced under Non – Banking Financial Companies (NBFC). However, the information cannot be shared without the permission of the concerned individual.

Businesses, especially MSMEs, must go through an extensive procedure of providing the Goods and Services Tax (GST) data in order to obtain credit from lending institutions. However, the lending institution can get all the data with just one click and an OTP by using the account aggregator.

Officials claim that connecting the two will allow for the smooth sharing of taxpayers’ account information and will save them time by making it simple for creditors to retrieve information from tax returns as well as their savings, pension accounts, and other aggregates.

It is expected that this will ensure transparency and also will ease the procedures for the businesses for availing credit facilities.

Banks, non-banking financial institutions, asset management firms, depository institutions, depository participants, insurance companies, and pension funds are among the registered financial information providers in the AA network.

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