corporate information...2 goods and services tax network cin: u72200dl2013npl249988 registered &...

CORPORATE INFORMATION

BOARD OF DIRECTORS

Dr. Ajay Bhushan Pandey ChairmanShri Prakash Kumar CEO Shri Anil Kumar Jha Additional DirectorMs. Meera Swarup DirectorDr. Rajeev Ranjan Director Shri Arvind Agarwal DirectorShri Alok Sinha Additional DirectorShri R. Chandrashekhar DirectorShri Anand Sinha DirectorShri Nitin K. Jage DirectorShri Ajay Kumar Gupta Director

EVP (Support) EVP (Technology) EVP (Services) SVP (Fin)/CFO VP (CS & CCO) Dr Abhishek Gupta Shri Nitin Mishra Ms. Kajal Singh Shri Prabin Dokania Shri Pankaj Sharma

REGD & CORPORATE BANKERS : AUDITORS :OFFICE :

Worldmark – 1, East Wing Punjab National Bank M/s Shiromany Tyagi & Co 4th Floor, Aerocity, Syndicate Bank Chartered Accountants,18,New Delhi – 110037. HDFC Bank Netaji Subhash Marg, Darya Ganj IDFC Bank Delhi – 110002.

TABLE OF CONTENTS

S. No Particulars Page No.

1 Notice to Shareholders 1

2 Attendance Slip 8

3 Letter of Authority 9

4 Route Map to reach AGM venue 10

5 Board’s Report 11

6 Comments of Comptroller and Auditor General of India

33

7 Independent Auditor’s Report 36

8 Audited Financial Statements 43

9 Notes to Financial Statements and Accounting Policies

46

10 A Two year journey of GST 65

11 Award & Recognition 77

1

NOTICE OF

6TH ANNUAL GENERAL MEETING OF GSTN

NOTE TO GUIDE

1. Notice of 6th Annual General Meeting of GSTN attached along with notes and explanatory statements. Enclosed Route Map, will help you to reach the AGM venue easily.

2. Notice contains 3 Resolutions to be approved by the Shareholders:-

a) For Adoption of Annual Audited Accounts for the financial year 2018-19.

b) Fixation of remuneration of Statutory Auditor for the financial year 2019-20.

c) Confirmation of 2 Additional Directors appointed by the Board after last AGM.

3. The Attendance Slip duly signed along with the Authority Letter should be submitted at the help desk at AGM.

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GOODS AND SERVICES TAX NETWORKCIN: U72200DL2013NPL249988

Registered & Corporate Office: Worldmark-1, East Wing, 4th Floor, Aerocity, New Delhi 110037

Tel: 011-49111301, 49111302www.gstn.org ; Fax 011-49111210

NOTICE OF 6TH ANNUAL GENERAL MEETING

To,

The Shareholders

NOTICE is hereby given that 6th Annual General Meeting of the Members of Goods And Services Tax Network will be held as under:

Day & Date : Tuesday, 24th December, 2019

Time : 1:00 pm

Venue : Conference Room Alpha, Goods And Services Tax Network at Worldmark-1, East Wing, Tower-B, 4th Floor, Aerocity, New Delhi 110037.

To transact the following businesses:--

AS ORDINARY BUSINESS:

1. Consideration of Audited Financial Statements together with the Auditors’ Report and Board’s Report thereon and Comments of the Comptroller & Auditor General of India.

To receive, consider and adopt the Audited Financial Statements as on 31st March, 2019 together with the Auditors’ Report and Board’s Report thereon and Comments of the Comptroller & Auditor General of India and to pass the following resolution as an Ordinary Resolution:

“RESOLVED THAT the Audited Financial Statements of the Company for the financial year ended on 31st March, 2019, together with the Auditors’ Report and the Board’s Report thereon and Comments of the Comptroller & Auditor General of India be and are hereby received, considered and adopted.”

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2. Fixation of remuneration of the Statutory Auditors Financial Year 2019-20.

To fix the remuneration of the Statutory Auditors of the Company for the Financial Year 2019-20, in terms of the provisions of Section 139(5) read with section 142 of the Companies Act, 2013 and to consider and if thought fit to pass with or without modification(s) the following resolutions as an Ordinary Resolution:

“RESOLVED THAT the Board of Directors of the Company be and are hereby authorised to finalise and fix the remuneration of the Statutory Auditors of the Company for the audit of accounts of the Company for the Financial Year 2019-20.”

“RESOLVED FURTHER THAT Shri Prakash Kumar, CEO and Shri Pankaj Sharma, VP (Company Secretary & Chief Compliance Officer) be and are hereby severally authorized to do all acts, deeds and things which are necessary for this purpose.

AS SPECIAL BUSINESS:

3. Confirmation of Appointment of Two Additional Directors.

To consider and if thought fit to pass with or without modification(s) the following resolutions as an Ordinary Resolution:

“RESOLVED THAT pursuant to provisions of section 152, section 161 of the Companies Act, 2013, Articles of Association & other relevant rules made thereunder, the following directors, who were appointed as an Additional Directors and hold office until the date of this Annual General Meeting be and are hereby appointed as Directors of the Company:

S No. Name of Director DIN1. Shri Anil Kumar Jha 020385072. Shri Alok Sinha 02669682

“RESOLVED FURTHER THAT pursuant to section 152 of the Companies Act, 2013, & other relevant rules, written consent in Form DIR-2, MBP-1 (for disclosure of interest) and DIR-8 (declaration of disqualification) received from these directors be and is hereby noted.

“RESOLVED FURTHER THAT Shri Prakash Kumar, CEO and Shri Pankaj Sharma, VP (Company Secretary & Chief Compliance Officer) be and are hereby severally authorized to do all acts, deeds and things which are necessary for this purpose.

By the Order of Board,Goods And Services Tax Network

- Sd- Pankaj SharmaPlace: New Delhi VP (Company Secretary & CCO)Date: 5th December, 2019

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NOTES:

1. AS PER SECTION 105 OF THE COMPANIES ACT, 2013 AND RULE 19 OF THE COMPANIES (MANAGEMENT AND ADMINISTRATION) RULES, 2014, A MEMBER OF SECTION 8 COMPANY SHALL NOT BE ENTITLED TO APPOINT ANY OTHER PERSON AS HIS PROXY UNLESS SUCH OTHER PERSON IS ALSO A MEMBER OF COMPANY.

2. Corporate Members are requested to send a duly certified copy of resolution authorizing their representative to attend and vote on their behalf at the Meeting.

3. Members/ Authorized Representative should fill the Attendance slip enclosed herewith for attending the meeting. They are requested to bring a copy of the Annual Report along with them.

4. The complete notice as well as Annual report of the Company is also available on the website of the Company www.gstn.org.

5. As per the provisions of the Companies Act, 2013, facility for making nomination is available for shareholders in respect of the shares held by them.

6. The members may be informed that pursuant to Section 139(5) of the Companies Act, 2013 the Comptroller and Auditor General of India (CAG) has power to appoint or re-appoint statutory auditors of the Company for the FY 2019-20 and in terms Section 142 of the Companies Act, 2013, the remuneration of the statutory auditors of the Company has to be fixed by the Company in the General Meeting or in such manner as the Company in General Meeting may determine.

7. The Comptroller and Auditor General of India (CAG) vide their Letter Ref. No./CA. V/ COY/ CENTRAL GOVERNMENT,GSTN(1)/89 dated 31st July, 2019 has appointed M/s. Shiromany Tyagi & Co (DE0877), Chartered Accountants as statutory auditors of the Company for the FY 2019-20 under Section 139 of the Companies Act, 2013. The members in the ensuing Annual General Meeting may authorize the Board of Directors to fix an appropriate remuneration of statutory auditors for the FY 2019-20 as may be deemed fit by the Board.

8. The Office of Registrar of Companies, Ministry of Corporate Affairs, Government of India has granted its approval for extension of 3 months for holding Sixth Annual General Meeting (AGM) by the Company beyond 30th September 2019 and has approved eForm filed by the Company vide SRN H94841251 dated 26th September 2019.

9. The application for extension for holding of AGM was filed by the Company considering the fact that Supplementary Audit/Test Audit was carried out by CAG and Comments/Reports of CAG was received only on 2nd day of September 2019. Further, GSTN could not finalize its Annual Report without putting the CAG Report in it. Hence it was not feasible for the Company to hold the 6th Annual General Meeting on or before 30th September, 2019. Therefore the Company was left with no other option but to seek permission from the Office of Registrar of Companies, Ministry of Corporate Affairs, Government of India for extension of time for holding AGM by the Company for the FY 2018-19. The AGM is being convened within extended time.

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10. The Explanatory Statement pursuant to section 102(1) of the Companies Act, 2013 in respect of special business at item no. 3 is enclosed.

11. Members are advised, in their own interest, to convey to the Company at the earliest opportunity, any change in their postal/ email address.

12. Members are requested to send their queries, if any, to reach the company at the corporate office at least 10 days before the date of meeting so that information with regard to the same can be made available at the meeting.

13. All relevant documents referred to in the notice and the statements are open for inspection at the corporate office of the company on all working days between 11 am to 2 pm except Sundays and holidays up to the date of Annual General Meeting.

*****

6

EXPLANATORY STATEMENT PURSUANT TO SECTION 102 OF THE COMPANIES ACT, 2013.

ITEM NO. 3

This is to inform to the members that Shri Anil Kumar Jha, Additional Secretary, Revenue, was nominated by Department of Revenue, Ministry of Finance, Government of India as an Ex-Officio Director on GSTN Board in the Group-A entity (Central Government) under Article 47 of the Articles of Association (AOA). Shri Alok Sinha, Additional Chief Secretary, Commercial Tax and IT & Electronics, Uttar Pradesh Government was also nominated as Director by GST Council for Group B (State Government).

The Directors resolution passed by circulation approved the appointment of Shri Anil Kumar Jha, Additional Secretary, Revenue and Shri Alok Sinha, Additional Chief Secretary, Commercial Tax and IT & Electronics, Uttar Pradesh Government as an Additional Directors on the Board of GSTN under Section 161(1) and other applicable provisions of the Companies Act, 2013.

Pursuant to the provisions of Section 161 of the Companies Act, 2013 and other relevant rules made thereunder, they shall hold office up to the date of ensuing Annual General Meeting of the Company.

As per section 152 of the Companies Act, 2013 their appointment needs to be confirmed by the shareholders in the ensuing Annual General Meeting.

After noting their nominations your company is proposing appointment of following directors in the forthcoming Annual General Meeting:

Name DIN Date of Appointment

Experience/Designation

Shri Anil Kumar Jha 02038507 16th May, 2019 Additional Secretary (Revenue), Department of Revenue, Ministry of Finance, Government of India.

Shri Alok Sinha 02669682 1st January, 2019 Additional Chief Secretary, Commercial Taxes and IT & Electronics, Government of Uttar Pradesh.

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Their Consent letter in Form DIR-2 and other requisite documents i.e. Form MBP-1 and Form DIR-8 has been received from them as per Companies Act, 2013.

None of the Directors and Key Managerial Personnel of the Company, except themselves for their respective appointment, is in any way concerned or interested, financial or otherwise in this resolution.

By the Order of Board, Goods And Services Tax Network

-Sd- Pankaj SharmaPlace: New Delhi (VP- Company Secretary & CCO)Dated: 5th December, 2019.

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GOODS AND SERVICES TAX NETWORKCIN: U72200DL2013NPL249988

Registered & Corporate Office: Worldmark-1, East Wing, 4th Floor, Aerocity, New Delhi 110037

Tel: 011-49111301, 49111302www.gstn.org ; Fax 011-49111210

ATTENDANCE SLIP

Regd. Folio No. :-

No of Shares Held:-

I hereby record my presence at the 6th Annual General Meeting of the Company being held at Conference Room Alpha of Goods And Services Tax Network, Worldmark-1, 4th Floor, East Wing, Aerocity, New Delhi-110037 on Tuesday, 24th December, 2019 at 1:00 PM.

Name of the Shareholder (in block letters):-

Name of Authorised Representative

( in block letters) : -

Signature of Authorised Representative

(Authorised Representative of the Shareholder attending the meeting is requested to complete the attendance slip and handover it at the help desk of the Meeting Hall)

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Letter of Authority(for attending 6th Annual General Meeting)

To, Date: ................................................, 2019

Shri, Pankaj Sharma,VP-Company Secretary & CCO Goods And Services Tax Network,Worldmark-1, East Wing,4th Floor, Aerocity, New Delhi 110037

Sub: Delegation of Authority for attending 6th Annual General Meeting of GSTN

Sir,

We, ................................................................................................... hereby authorize following representative(s) to attend and vote, at 6th Annual General Meeting (including any adjourned thereof) of members of GSTN to be held on Tuesday, 24th December, 2019 at 1:00 PM at Conference Room Alpha of Goods And Services Tax Network, Worldmark-1, 4th Floor, East Wing, Aerocity, New Delhi-110037, on the items detailed in the notice of AGM.

1. Name : ...............................................................................

Designation: ....................................................................

Signature: .........................................................................

2. Name : ...............................................................................

Designation: ....................................................................

Signature: .........................................................................

We confirm that the vote cast by our above representative shall be final, binding and shall be counted for decision making purpose by GSTN.

Yours faithfully

Signature: ...........................................................................

For and on behalf of: ....................................................

Name : ..................................................................................

Designation: ......................................................................

Note: In case Corporate/ Financial Institutions, this authority letter shall be accompanied with board resolution.

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BOARD’S REPORTFOR


NOTE TO GUIDE1. A Board’s Report reflects the summary of all activities of the organisation including financial,

operational, its management, compliances to law etc.

2. “Board’s Report “ of GSTN contains the requirements of Section 134 of the Companies Act, 2013 and other applicable rules & provisions, review of operation of GSTN and other matters as per as follows:--

a) Present share capital structure, and details of fund received /utilization.

b) Board/ committee meetings, new directors/KMP’s, Human Resources etc.

c) Various Compliances, Accounting Standards/Policies etc.

d) Management, future outlook, and control/systems.

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BOARD’S REPORT

To,

The Members,Goods And Services Tax Network

Your Directors have pleasure in presenting this Sixth Annual Report together with the Audited Financial Statements of your Company, Auditors’ Report and Comments of Comptroller and Auditor General of India thereon for the financial year ended on 31st March, 2019.

1. REPORT ON COMPANY’S ACTIVITIES

A. Financial Review

The details of the Income and Expenditure incurred during the Financial Year 2018-19 are as under:-

Particulars (Amount in Rs.)

2019 2018

1] Allocation of Govt. Grant-in-aid General for Expenses 48,48,216 48,48,216

2] Allocation of Govt. Grant-in-aid for Capital Assets 10,88,81,180 8,31,30,201

3] Income from TINXSYS Project 4,82,34,696 5,59,43,207

4] Income from GST Project 305,34,75,149 150,71,21,527

5] Interest on FDR 15,57,20,102 61,12,181

6] Interest on Saving Accounts 1,11,55,372 4,28,56,458

7] Other Income 81,69,686 2,31,640

8] Total Inocome (1+2+3+4+5+6+7) 339,04,84,401 170,02,43,430

9] Expenses for TINXSYS Project 4,71,67,032 4,79,56,169

10] Expenses for GST Project 151,35,70,391 76,05,40,045

11] Expenses incurred out of Govt. Grant-in-aid General 48,48,216 48,48,216

12] Other Expenses 48,50,82,194 34,30,47,388

13] Depreciation 116,37,03,744 49,02,85,543

14] Surplus before Tax (8-9-10-11-12-13) 17,61,12,824 5,35,66,069

15] Less: Tax Expense 5,30,29,286 21,23,91,579

Balance carried forward to Reserves & Surplus(14-15) 12,30,83,538 -15,88,25,510

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B. Background

Your Company, Goods And Services Tax Network (GSTN) is a not for profit, non-Government, private limited company. It was incorporated on 28th March, 2013 under Section 25 of the Companies Act, 1956 (Now Section 8 of the Companies Act, 2013).

The Government of India holds 24.5% equity in GSTN and other States of the Indian Union, the NCT of Delhi, Puducherry, and the Empowered Committee of State Finance Ministers, together hold another 24.5%. Balance 51% equity is with non-Government financial institutions.

Your Board of Directors comprises whole time Directors, Directors from all stakeholders as well as Professional Directors.

C. Change in the Shareholding Pattern of GSTN

The members may be aware that pursuant to the decision of the GST Council in its 27th Meeting held on 4th May 2018 that GSTN will be converted into a 100% Government-owned entity by transferring 51% equity shares held by the Non-Government institutions to the Centre and states equally.

The Union Cabinet in its Meeting held on 26th September 2018 has also approved the proposal to convert GSTN into a fully-owned Government Company with 50% equity of the Company to be held by the Central Government and the balance 50% to be held by various States and Union Territories. The government will now own 100 per cent of GSTN, the IT backbone to the new indirect tax regime.

In order to facilitate the above decision and other regulatory requirements and consequent to the approval as accorded by Office of the Registrar of Companies (ROC), Ministry of Corporate Affairs, Government of India, the shareholders of GSTN in their Extra-Ordinary General Meeting (EGM) held on 21st June, 2019, has approved the adoption of altered Memorandum of Association( MOA) and the Articles of Association (AOA) of GSTN and provided its In-principle approval for change of share capital/ownership structure of the Company and transfer of shares from Empowered Committee of State Finance Ministers (EC) & Non- Government Institution to Centre, State Governments & Union Territories. The acquisition of shares by the Centre and the States from the Non- Government Institutions are in process.

D. Mandate of the Company

The Company has been set up primarily to provide IT infrastructure and services to the Central and State Governments, taxpayers and other stakeholders for implementation of the Goods and Services Tax (GST). It would thus play a critical role in reforming the indirect tax system in India.

E. Work done so far

The GST law was rolled out w.e.f. 1st July 2017 by central and State Governments subsuming in itself all indirect taxes prevailing in the country, including the three major indirect taxes Central Excise, Service Tax and VAT. Your company has been entrusted with creation of IT infrastructure for the rollout and thus is playing critical role in reforming the indirect tax system in India.

In order to shoulder this tremendous responsibility, GSTN has built an organisation that has necessary expertise in both the IT and taxation domains. While a few critical positions at various levels in the Company are being manned by officers drawn from the Government, a majority of the positions have been filled through recruitment from the open market.

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GSTN appointed India’s second largest IT services Company Infosys as a Managed Service Provider (MSP) on 7th November 2015. The MSP was tasked to do the following:

Track Scope of Work

I Application design, development and implementation

II Taxpayer one time Data Porting

III IT Infrastructure procurement, supply, installation and Info Security

IV DC/DR Hosting Services including providing Bandwidth for the project

V Helpdesk Setup and Operations

VI Training and Capacity Building

VII Operations and Maintenance of the GST System for 5 years

Status of Software Development

Your company signed the MSP contract with M/S Infosys on 6th of Nov 2015. The work on development of SRS started with Business Process documents made available by Empowered Committee Secretariat in the year 2015. The development of GST Systems was divided into three parts, keeping in view likely availability of Law/Rules, requirement of modules and the rollout date.

Phase 1 – GST External Service Components

Phase 2 – GST Internal Service Components

Phase 3 – GST Analytics Components

• Taxpayer registration• Taxpayer registration

approval• Invoice Upload• Payments• Return• Input Credit

reconciliation• IGST Settlement• MIS Reports• System

Administration• Security Management

• Audit,• Assessment• Refund• Adjudication• Appeal• investigation• Recovery and • Write-off

• Business intelligence• Management

Dashboard• Dynamic Reporting

For all Taxpayers and all Tax Authorities

For 27 States/UTs (Model-2 States)

For all States and Central Govt tax officers

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Development of a software is dependent on Rules, which contain processes and forms. The first version of Model GST Law (MGL) was made available in June 2016. Based on released MGL, the first version was SRS of Phase-1 was frozen by GSTN team in June 2016. In Sept’ 16, the draft Rules for Registration, Return, Payment, Invoice and Refund (relevant for Phase-1) were published by the Council. The processes defined in Business Process Reports, which were used by GSTN team to develop SRS, were changed substantially along with change of Forms. With the result the SRS had to be re-visited again. While work was going on revision of Phase 1 - SRSs, the Council published revised draft of Model GST law on 26th Nov ’16. The revised Model GST Law had many changes vis-à-vis the first version. The changes made in the Model Law had to be taken into consideration while updating SRS and codes already written.

The Law Committee constituted by the Council was meeting regularly to update the Law and Rules related to phase-1 processes. In its meeting held in Dec ‘16, the Law Committee again revised Rules dealing with Registration, Payment, Composition and Refund. Keeping in view the rollout date of 1st Apr ‘17, it was decided to freeze all changes made by Law Committee till 30th Dec ‘16 and complete the development so that Registration, Payment and first three returns are made available by this date. Request was made to the Law Committee to provide Rules for remaining parts (transitional provisions, audit, Assessment, Refund, Adjudication, Appeal, investigation, Recovery and Write-off).

The final draft rules were made available in Apr 2017. After analysis of revised rules and the impact of the new changes on the system being developed by the GSTN, the SRSs and technical designs were updated again. In the meantime, Government decided to extend the date of implementation of GST with effect from 1st of July 2017. Even after this, some more changes were made in the Rules and Forms during May and June 2017. Thus, your company had to adopt agile method of development of software and adopt staggered delivery to cope up with continued changes. Your company has deployed following modules on the GST Portal:

Services made available on GST Portal

Registration Return Payment1. Registration for Normal

Ta x p a y e r / I S D / C a s u a l Taxpayer/TDS/UIN/Non-resident

2. Enrolment for GSTP3. Opt for and Opt out from

Composition scheme4. Cancellation of Registration/

Revocation of cancellation 5. Intimation of details of stock

(CMP-03)6. Engage/ disengage

GST Practitioner, GSTP Dashboard, and Locate GSTP

7. Suo-Moto cancellation initiated by tax officials

8. REG 30 – Field visit report by tax officers

9. Non-Core amendment of UIN and other notified bodies.

1. GSTR-1//2A/3B with Offline Utility2. GSTR-4 for Composition taxpayers3. GSTR 5: Return for Non Resident

Taxpayer4. GSTR 6, (for ISD online and offline) 5. GSTR-5A for OIDAR (Online Data

Access or Retrieval Services) 6. GSTR 11: Statement of purchases

for UN bodies.7. ITC-01/02/03/04 8. GSTR 4 A (related to B2B inward

supplies, CN/DN of composition taxpayer

9. GSTR 7: Creation & Submission of Return for TDS (Online & Offline)

10. GSTR 8: Creation & Submission of Return for e-Commerce (TCS)

11. GSTR10: Final return with offline Utility.

12. GSTR9C Offline13. GSTR9 - Preparation & Filing of

Annual Return for Normal Taxpayer

1. Online Payments through Internet Banking and NEFT/ RTGS

2. Offline Payments-Over the Counter (Authorised Bank) for amount upto Rs. 10,000/-

3. Creation and maintenance of Electronic Cash Ledger

4. Form GST PMT-07 - Grievance for payment

5. Automatic addition selected bank in the preferred banks list.

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10. Compulsory Withdrawal from Composition Scheme

11. Application for Amendment of Registration - Non Core Fields - Other Taxpayers (GSTP)

12. RC generation for OIDAR a13. nd UIN users created

through utility14. Application for Revocation

of Suomoto Cancellation of OIDAR/TDS/TCS/NRTP users.

14. Generation of User ID for unregistered users

15. Application for Filing Clarification through GSTP for all tax payers - for Suo Moto Cancellation of Registration.

16. Filing of Amendment of Registration Core fields/Non-Core fields for TDS/TCS/NRTP/OIDAR/UN Body/Embassy/ONP users through GSTP

17. Filing of Application for Filing clarifications through GSTP and Filing of Application for cancellation of Registration through GSTP

18. Filing of Application for Filing clarifications through GSTP for UN Body/Embassy/ONP users

19. Filing of Application for cancellation of Registration for Normal TP, Composition, SEZ Developer, SEZ Unit, Casual Taxable Person, ISD and NRTP users through GSTP.

20. OIDAR cancellation, G2G APIs and filing through GSTP.

14. Payment of self-assessed tax by composition taxpayer- Form GST CMP -08.

New Returns (Beta) New Return Offline Tool (Trial)i. Form GST ANX-1: for preparing outward supplies details by entering details for each document or by importing from an excel file. The template of excel sheet is also available along with the Tool.

ii. Form GST ANX-2: for preparing inward supplies details by taking action on the auto-drafted version.

iii. Matching Tool: for matching of data of GST ANX-2, downloaded from GST Portal with Purchase register.

Following New features for ANX1 & ANX 2 for both Online, Offline modes in Beta version have been released:(1) Mark for Delete function(2) PDF Summary generation(3) Release of Anx1 & Anx2 Online for

the Sahaj & Sugam.

Enhancement to New Return Offline Tool:I. ANX2 Offline : Error flow

II. ANX1 Offline : Error SummaryIII. New version NotificationIV. ANX2 Offline : Multi-chunkingANX2 Online Production Deployment: Movement of following functionalities to ProductionI. Greater than 500 advanced search

II. Export to csvIII. Export pdfANX1online Production ReleaseI. Common functionality (Search,

Sort, Records per page) of all the tables

II. ANX1 G2B APIS

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Transitional Forms Refund Online Refund and PFMS1. Tran Form 1 -

Transitional ITC / Stock Statement (Closed).

2. Edit of Tran Form -1 (Closed).

3. TRAN Form 2- Credit on goods held in stock on the appointed day (Closed).

4. TRAN 2 Offline Tool5. Tran Form 3 - Credit

distribution (Closed).

1. Excess balance in Electronic Cash ledger

2. Exports of services- with payment of tax

3. Exports of goods / services- Without payment of Tax, i.e., ITC accumulated (with multiple tax period)

4. ITC accumulated due to inverted tax structure [under clause (ii) of first proviso to section 54(3)] (with multiple tax period)

5. On account of supplies made to SEZ unit/ SEZ developer (with payment of tax) (with multiple tax period)

6. On account of supplies made to SEZ unit/ SEZ developer (without payment of tax) (with multiple tax period)

7. Recipient of deemed export (with multiple tax period)

8. Tax paid on an intra-state supply which is subsequently held to be inter-state supply and vice-versa

9. Excess payment of Tax, if any10. Any Other Refund11. Supplier of Deemed Export

(with multiple tax period)12. Filing of monthly refund

applications by Quarterly Return filers.

Online refund processing functionality has been deployed. The taxpayers can file refund application (in Form GST RFD 01) and the tax officers can process the refund application, online. After processing the refund application the tax officials can issue payment order online and the amount will be refunded/ credited to taxpayer’s account, as provided by them in their refund application. Below mentioned forms are made available:1. Form GST RFD-01 –

Application for Refund.2. Form GST RFD-02 - Sending

Acknowledgement.3. Form GST RFD-03 -

Raising Deficiency Memo.4. Form GST RFD-04 - Issuing

Provisional Refund Order.5. Form GST RFD-06 - Issuing

Final Refund Order.6. Form GST RFD-05 -

Generating Payment Order.

7. Form GST RFD-07B - Withholding Refund.

8. Form GST RFD-08 - Sending Show Cause Notices by tax official.

9. Form GST RFD-09 - Reply to Show cause notice by taxpayer.

10. Form GST PMT 03 - For re-credit of inadmissible ITC.

Integration with PFMS for GST Refund Disbursement and allowing tax payer to change the bank account details from front office.

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Assessment & Adjudication Appeal Advance Ruling1. Assessment of Non-filers of

Returns – Only for GSTR3B Defaulters

2. Determination of Tax (Fraud/Others) – Only Notice u/s 73/74

3. Summary Assessment4. Rectification of Mistakes5. Provisional Attachment6. Assessment/adjudication

for tax collected but not deposited u/s 76

7. Assessment of Non-filers of Returns (GSTR4, GSTR5).

8. Cross empowerment of Tax Officials, within a State/ UT.

9. Assessment of remanded cases and Appeal effects

1. Proceedings & Order of First Appeal

2. Internal Review Cell3. Rectification Backlog4. Tax Department

Appeal (All Demand Order)

5. Auto Approval for Appeal filed by Tax payer and Tax Department.

6. Appellate authority/Revision Authority is able to issue Rectification Order on top of Appeal O r d e r / R e v i s i o n Order

1. Advance Ruling by the Authority-A01_Difference of opinion

2. Sending periodical alerts for disposal of Application/appeal or matter, rectification of mistake within specified time limit.

3. Generation / Updation of cause List of Authority

4. Appeal against the Advance Ruling given the Authority

5. Appeal against the Advance Ruling given the Authority-A01_ Filing of Appeal by Tax Department

6. Processing of Appeal against Advance Ruling

7. Advance Ruling by Appellate Authority on reference from Authority-cause list preparation

8. Rectification of mistake in the order by the advance ruling authority or its appellate authority.

Recovery Module Additional Feature made available1. Allocation of recovery case to Recovery Officer2. Debit from Electronic Credit/Cash Ledger3. Sale of good under control of Recovery Office4. Notice to third Parties5. Attachment/Seizure of Immovable/Movable

Property6. Issuance of certificate to Revenue authorities7. Application to Magistrate for Recovery as Fine8. Enhancement/ Reduction in Appeal, Review or

Other Proceedings9. Recovery from other States10. Notice to Specified Officer

1. NIL return Filing and Questionnaire based display in Form GSTR-3B for the taxpayers.

2. GSTR 3B: Suggested ITC utilization and creation of challan

3. Tax officials have been provided with a functionality, to view details of GSTR-1, GSTR-2A, GSTR-3B, GSTR-5, TRAN 1, and ledgers of a taxpayer

4. Grievance management for model 2 States/UTs has been released.

5. Form GST ARA-01 (Facility to apply for Advance ruling)

6. View of all registrations done against a PAN within a State to the Tax officer during processing of registration application.

7. Preparation of form by GST APL-01 by GSTP, on behalf of taxpayer.

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8. Ease of Doing Business: Removal of Bank Account at the time of Registration of Normal Taxpayer , OIDAR , NRTP

9. Save feature for GSTP, so GSTP can fill up LUT application on behalf of Taxpayer.

10. Updation of GST landing page with a new functionality to the Micro, Small and Medium Enterprises (MSMEs) tax payers for providing option to download “Accounting & Billing Software” from GST Portal under “Downloads” functionality.

11. Back office User dashboard – Issue notice and View DSC registered as tax payer.

12. Integration of GST portal Registration with SPICe System (MCA).

13. Enabled CMP-02 form.14. Release new version of Android Field

Visit app on Play Store.15. Allow view access of returns

for GSTINs located in another jurisdiction or another State

16. Enabling the BO users to view the GSTR 3B Vs. GSTR 1 comparison report.

Prosecution & Compounding Policy Admin Enforcement1. Intimation about initiation

of Prosecution Proceedings-Taxpayer will be notified about initiation of prosecution on his dashboard and via Email / SMS.

2. File application for compounding of offence.

1. Drafting, Supervising, Approving and Publishing of Notifications, circular and Administrative Orders.

1. Case Creation 2. Survey of Unregistered Users3. Enquiry Creation4. Notice calling information5. Issue Summons6. Survey of Unregistered Dealer7. History/ Past offenses and Penal

actions/ Prosecution 8. Inspection or Search & Seizure9. Record Search10. Email on Enquiry Submission &

Response11. Reassignment and transfer of

Charge12. Detention or seizure of goods

and/or conveyance13. Enforcement Dashboard14. Cross Module Integration –

Assessment

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Registration Statistics (as on 29th Oct 2019)

1 Total number of Active Taxpayers in the GST System 1,23,73,4662 Out of 1 above, Migrated taxpayers from previous regime 56,35,7833 Out of 1 above, taxpayers registered from 1/7/2017 till date 67,37,683

GSTR-3B Return (Monthly Summary Return)

Tax period Taxpayers eligible to file

Filed till due date of Filing

Percentage of filing on due date of filing

Filed till date Percentage of Filing till date

29th Oct, 2019 29th Oct, 2019

Jul-17 74,61,214 38,34,877 51.40% 65,96,286 88.41%Aug-17 75,32,807 27,25,183 36.18% 71,87,548 95.42%Sep-17 79,25,831 39,34,256 49.64% 75,38,543 95.11%Oct-17 81,54,303 43,68,711 53.58% 72,97,984 89.50%Nov-17 79,92,517 49,13,065 61.47% 73,95,774 92.53%Dec-17 81,82,277 54,26,278 66.32% 74,82,880 91.45%Jan-18 83,63,437 53,94,018 64.50% 76,04,921 90.93%Feb-18 85,45,661 54,51,004 63.79% 77,33,927 90.50%Mar-18 87,08,493 52,83,962 60.68% 78,49,492 90.14%Apr-18 88,17,798 56,38,813 63.95% 79,35,404 89.99%May-18 91,22,309 56,18,925 61.60% 80,82,808 88.60%Jun-18 93,16,710 58,39,034 62.67% 81,92,522 87.93%Jul-18 94,70,282 64,39,259 67.99% 82,94,087 87.58%

Aug-18 96,15,273 57,02,349 59.31% 83,95,098 87.31%Sep-18 96,57,239 64,19,403 66.47% 84,77,433 87.78%Oct-18 97,57,664 59,28,822 60.76% 85,47,348 87.60%Nov-18 98,46,645 63,36,787 64.35% 84,87,513 86.20%Dec-18 99,01,997 62,49,078 63.11% 85,55,300 86.40%Jan-19 99,72,639 69,54,291 69.73% 85,98,204 86.22%Feb-19 1,00,54,283 60,86,027 60.53% 86,42,199 85.96%Mar-19 1,01,74,978 65,98,265 64.85% 86,41,231 84.93%Apr-19 1,02,33,313 60,61,978 59.24% 84,63,933 82.71%May-19 1,02,86,063 65,18,408 63.37% 84,53,540 82.18%Jun-19 1,03,58,399 66,88,664 64.57% 84,07,243 81.16%Jul-19 1,04,26,762 70,80,475 67.91% 82,96,126 79.57%

Aug-19 1,04,55,891 65,67,219 62.81% 81,00,240 77.47%Sep-19 1,04,73,814 59,90,353 57.19% 72,92,951 69.63%

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Status of E-Way Bill (EWB)

Total e-Way Bills generated till from 1st April 2018 till 29th Oct 2019 91,95,30,081

Count of Inter State e-Way Bills 39,89,65,668 (43.39%)

Count of Intra State e-Way bills 52,05,64,413 (56.61%)

Highest number of e-Way bill generated in a day 23,84,869 (on 28th Feb 2019)Number of Tax payers registered with e-Way bill system as on Date 31,84,845

Number of Transporters registered with e-Way bill system as on Date 46,267

Month wise e-way bill generation statistics as on 29th Oct 2019

Financial Year Month Intra State Inter State Total

2019-20 (YTD)

April, 2019 3,04,86,357 2,20,38,234 5,25,24,591May, 2019 3,16,85,231 2,25,89,362 5,42,74,593June, 2019 2,96,99,267 2,00,46,396 4,97,45,663July, 2019 3,10,46,589 2,11,22,303 5,21,68,892Aug, 2019 3,00,39,708 2,11,82,769 5,12,22,477Sep, 2019 3,00,86,136 2,23,22,188 5,24,08,324Oct, 2019 2,85,34,936 2,08,71,684 4,94,06,620

Total 21,15,78,224 15,01,72,936 36,17,51,1602018-19 Total 30,89,86,189 24,87,92,732 55,77,78,921

Grand Total 52,05,64,413 39,89,65,668 91,95,30,081

2. APPROPRIATION OF PROFIT/SURPLUS

A. Dividend

Your company cannot declare any dividend, being a Non-Profit Company incorporated under Section 25 of the Companies Act, 1956, (now Section 8 of Companies Act, 2013) and Clause v (ii) of the MOA of the company prohibits the payment of any dividend to its members.

B. Transfer To Reserves

Net surplus/profit of Rs. 12,30,83,538/-(Previous Year Rs. -15,88,25,510/-) for the year, has been transferred to Reserves & Surplus during the financial year under review.

3. MATERIAL CHANGES & COMMITMENTS

Save as mentioned elsewhere in this Report, no material changes and commitments affecting the financial position of the Company have occurred between the end of financial year on 31st March, 2019 and the date of report, like settlement of any tax liability, destructions of any assets, institution of cases by or against the company etc., as required to be reported under Section 134(3)(l) of the Companies Act, 2013.

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4. MANAGEMENT & FUNCTIONING

a) Board of Directors: At present, there are total 11 members on the Board of Directors including a Chairman against total strength of 14. The details of the Directors who have been appointed or ceased from the date of last Report including for the period from the date of last AGM (21st December, 2018) till date are as under:

• Shri Anil Kumar Jha and Shri Alok Sinha were appointed by the Board of Directors as Additional Directors to hold office till the conclusion of forthcoming Annual General Meeting (AGM) of the Company.

• Shri Girish Chandra Murmu has resigned/ceased his office of director and Shri S. K. Panda has also vacated his office as a director as a result of his superannuation. Shri Bhavesh C Zaveri has also submitted his resignation from the Board of GSTN. The Board of Directors appreciated the services rendered by them during their tenure as Directors of the Company.

• The Directors appointed by the Board as “Additional Directors” under Section 161 of the Companies Act 2013 need to be re-appointed/confirmed in the ensuing AGM as per provisions of Section 152. Accordingly, the Board recommends the re-appointment/confirmation of the following Directors in the forthcoming AGM:

• Shri Anil Kumar Jha • Shri Alok Sinha

b) Share Capital: As on date, the Paid-up share capital of the Company is Rs. 10,00,00,000/- which has been received from the Central Govt., State Govt. and EC and Non-Government Institutions as per Clause 6 of AOA.

c) The Grants received as on date: So far, your company has received the following amounts as Grants-in-aid from the Central Government:

i) Grants-in-aid for Capital Assets: - The details are as under:

d) The Grants received as on date: So far, your company has received the following amounts as Grants-in-aid from the Central Government during first three years of its existence:

i) Grants-in-aid for Capital Assets: - The details are as under:

Description Year Amount TotalGrant-in-aid received 2013-14 Rs. 50,00,000/-

2014-15 Rs. 62,80,280/-2015-16 Rs. 70,71,00,000/- Rs. 71,83,80,280/-

Less expenses incurred 2013-14 Rs. 12,80,280/-2014-15 Rs. 30,95,251/-2015-16 Rs. 35,35,54,903/- Rs. 35,79,30,434/-

Balance Carried forward Rs. 36,04,49,846/-Less: Amount Refunded Rs. 36,04,49,849/-Balance NIL

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ii) Grants-in-aid General: - The details are as under:

Description Year Amount TotalGrant-in-aid received 2013-14 Rs. 3,28,00,000/-

2014-15 Rs. 18,62,85,332/-2015-16 Rs. 50,22,00,000/- Rs. 72,12,85,332/-

Less expenses incurred 2013-14 Rs. 2,90,85,332/-2014-15 Rs. 11,06,95,106/-2015-16 Rs. 9,92,42,124/-

Allocated Prepaid Expenses 2016-17 Rs.60,48,207/-2017-18 Rs. 48,48,216/-2018-19 Rs. 48,48,216/- Rs. 25,47,67,201/-

Less: Amount Refunded Rs. 45,83,59,595/-Balance Carried forward (Allocated Prepaid Expenses) Rs. 81,58,536/-

iii) Expenditure incurred/Allocated: A total sum of Rs. 61,29,61,081/- have been spent in the last 6 years under various Heads, as under:

Year Amount2013-14 Rs. 3,03,65,612/-2014-15 Rs. 11,37,90,357/-2015-16 Rs. 45,27,97,027/-2016-17 Rs.63,11,653/-*2017-18 Rs.48,48,216/-*2018-19 Rs.48,48,216/-*

*Allocated Prepaid Expenses

5. PROGRESS & PRESENT STATUS

a. Board/Committee Meetings: The Board of Directors is the apex body constituted for overseeing the Company’s overall functioning. The Board provides and evaluates the Company’s strategic direction, management policies and their effectiveness, and also ensures achievement of the goals in targeted time. The Board has constituted HR Committee, Remuneration Committee and Corporate Social Responsibility Committee.

The detailed agenda and notes on agenda are circulated to Directors in advance for facilitating meaningful and focused discussions at the meetings. Where it is not practicable to attach any document to the agenda, it is tabled before the meeting with specific reference to that effect in the agenda. In special and exceptional circumstances, additional or supplementary item(s) on the agenda are permitted.

i. Board Meetings: For timely decision making, smooth working and to comply with the provisions of the Companies Act, 2013, the Board of Directors has held 4 meetings during the year under review, against the minimum requirement of four meetings in terms of Articles of Association of GSTN.

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The details of Board meetings held during the financial year 2018-19 are given below:

Date Total Strength No. of DirectorsPresent

May 30, 2018 13 11August 10, 2018 13 10

November 27, 2018 12 9February 28, 2019 13 8

ii. Committees of Board: For focussed and detailed working on certain matters, your Board has set-up the following Committees of the Board. The Company’s guidelines relating to Board meetings are applicable to Committee meetings as far as practicable.

1. HR Committee: Total of 2 meetings of the HR Committee were held during the financial year for improvement of the organisation structure of GSTN under the Chairmanship of Chairman of GSTN. The HR Committee also considers decisions and recommends to the Board the employee related matters.

The details of HR Committee meetings held during the year are as under:

Date Total Strength No. of MembersPresent

May 7, 2018 4 4August 28, 2018 5 4

2. Remuneration Committee: The Board has constituted Remuneration Committee of the Board during the financial year 2018-19 considering the nature of function of GSTN and its source of funding and its proposed conversion into 100% Government-owned entity, the Remuneration Committee of the Board voluntarily constituted as a good corporate governance practice, although the statutory provisions of Section 178 of the Companies Act, 2013 regarding Nomination and Remuneration Committee is not binding on GSTN. The formation of such an independent Committee will ensure transparency and objectivity with regard to formulate flexible and appropriate hiring policy of the employees and remuneration of senior management in the company. The Remuneration Committee of GSTN comprises of non-executive directors including independent directors of the company and chaired by Shri R. Chandrashekhar, Independent Director of the Company. No Meetings of Remuneration Committee of GSTN was held during the financial year 2018-19.

3. CSR Committee: The Board has also constituted CSR (Corporate Social Responsibility) Committee of the Board during the financial year 2018-19 under the statutory provisions of Section 135(1) of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility) Rules, 2014 in order to formulate and recommend to the Board, a Corporate Social Responsibility Policy which shall indicate the activities to be undertaken by the Company in areas or subject, specified in Schedule VII of the Companies Act; recommend the amount of expenditure to be incurred on the activities referred above and to monitor the Corporate Social Responsibility Policy of the Company from time to time.

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The CSR Committee of GSTN is comprise of the four (4) directors and one Meeting of CSR Committee was held during the financial year 2018-19 as per details given below:

Date Total Strength No. of MembersPresent

March 15, 2019 4 3

b. Key Managerial Personnel: The Companies Act, 2013 has grouped together the Important Functional Heads of a company and collectively called them the “Key Managerial Personnel” (KMP). Accordingly, your company has appointed three KMPs for the proper functioning and responsibility. Shri Prakash Kumar, CEO & KMP is responsible for carrying on the overall business for which the company is incorporated. Shri Pankaj Sharma, Vice President-Company Secretary & Chief Compliance Officer (CCO) and designated as KMP is responsible for ensuring compliances under the Companies Act, 2013 and other corporate laws and plays the role of advisor to the Board on compliances. Shri Prabin Dokania SVP (Finance)/CFO designated as KMP looks after finance related matters of GSTN.

c. Human Resources

Recruitment: During the year, sixteen numbers of employees were recruited for the company for its smooth functioning. The table below presents the strength of manpower as on 31st March, 2019 in GSTN:

Employee Type Employee Count

Fulltime Employees (Market Recruits) 51

Fulltime Employees (Deputationists) 16

Total 67

In addition, following persons were also engaged by your company

Consultants 05Contract Employees 50

d. Office Space: The Corporate & Registered Office of the Company is same at premises at World Mark-1, Tower-B, East Wing, 4th Floor, Aerocity, New Delhi-110037 in December 2016 having capacity for approximately 150 persons (employees/consultants/contracted resources/MSP resources).

e. Controls and Systems

i. Treasury Management: The Company has deposited surplus funds in fixed deposits with the banks to earn maximum interest on the same and is regularly reviewing the same.

ii. Finance and Accounts Manual: The Company has in place the Finance and Accounts Manual approved by the Board, which contains rules and procedures for the Accounts and Finance Functions of the Company including Budgeting, Procurement and Internal controls.

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iii. HR Manual: The Company has in place the HR Manual approved by the Board which contains HR policies and procedures and benefits/facilities for the welfare and smooth working environment for the Human Capital of the Company.

iv. Internal Financial Control: The Board has adopted policies and procedures for ensuring the orderly and efficient conduct of its business, including adherence to the Company’s policies, Finance and Accounts Manual and HR Manual. All these ensure prevention and detection of frauds and errors, completeness of the accounting records and the timely preparation of reliable financial disclosures.

v. Video Conferencing Facility: The Company has VC facility for its Board, Committee and other Meetings.

vi. Corporate Governance: Corporate Governance is an ethically business driven process that is committed to enhance the organisation’s brand and reputation. Your Company has been practicing good Corporate Governance and lays emphasis on transparency, accountability and integrity.

vii. Provisions of all applicable laws: The Directors have devised proper systems to ensure compliances to the provisions of all applicable laws and that such systems are adequate and operating effectively. The Company has also set up a Compliance Cell headed by a Chief Compliance Officer for supervising and ensuring compliances to the provisions of all applicable laws.

f. Compliances

i. Tax Compliances: The Company has complied with all the Tax Compliance requirements including the requirement of Tax Deduction at Source (TDS), Goods and Services Tax (Reverse Charge), deposit and filing of all TDS, Goods and Services Tax and Annual Income Tax Returns of the Company.

ii. Company Law Compliances: The Company has followed all the rules and procedures of the Companies Act, 2013 including holding of Board Meetings, appointment of Key Managerial Personnel, Accounts, Audit, filing of e-Forms etc.

iii. RTI Act, 2005: Your Company voluntarily opted to be covered under RTI Act. Your Company replied to a total of 191 RTI applications during FY-2018-19 and eight first appeals were disposed off during the same period under the RTI Act. A Writ Petition was filed earlier by GSTN titled GSTN vs. CIC & Anr. before the Hon’ble Delhi High Court, challenging the order of the CIC. Interim stay order against the decision of CIC has been issued in favour of GSTN and the case is pending final adjudication before the Hon’ble Delhi High Court at New Delhi.

iv. PF Registration: The Company is registered under Employee’s Provident Fund Act, 1952.

v. Employees’ State Insurance Act, 1948 & Employees’ State Insurance (General) Regulations, 1950: The Company has been registered under the provisions of Employees’ State Insurance Act, 1948 & Employees’ State Insurance (General) Regulations, 1950.

vi. Delhi Shops & Establishment Act, 1954: The Company is registered under the Delhi Shops & Establishment Act, 1954.

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vii. Payment of Gratuity Act, 1972: In accordance with the provisions of the Payment of Gratuity Act, 1972, the Gratuity Trust of the Company has been constituted and the same has also been duly registered.

viii. Policy on Sexual Harassment at Workplace: The Board of Directors of the Company has also laid down a policy on prevention of sexual harassment at workplace and the company has complied with provisions relating to the constitution of Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 [14 of 2013]. During the year under review, no cases were filed or complaint received pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. The awareness sessions have been conducted for the employees.

ix. Cost accounts and records: The provision w.r.t. maintenance of cost records as specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013, are not applicable on the Company and accordingly such accounts and records are not made and not maintained.

x. Shram Suvidha Portal Registration: The Company has got itself registered with Shram Suvidha Portal, a Government initiative which facilitates ease of reporting & compliances at one place under various labour legislations. The Company has been allotted Labour Identification Number (LIN).

xi. Green Initiative: Pursuant to Circulars No. 17/2011 dated April 21, 2011 and 18/2011 dated April 29, 2011 issued by the Ministry of Corporate Affairs, MCA has undertaken a “Green Initiative in Corporate Governance”, by allowing paperless compliance including service of notices/documents by companies to their shareholders/members through electronic mode. Your Company aims for Going Green to minimize impact on environment. For this, we use e-mails to converse with our members/Directors and within the organisation (between departments) to the maximum extent instead of using papers/Print outs. The electronic copies of Annual Report for the period 2018-19 and Notice of the 6th Annual General Meeting are sent to all the members through e-mails registered with the company.

xii. Penalties/Punishments: There was no penalty/punishment/ compounding fee imposed on the Company/Directors/any other officer of the Company during the year under review.

6. DEPOSITS

The Company has not accepted any Deposits from the Public and there is no outstanding Deposit pursuant to Chapter V of the Companies Act, 2013.

7. AUDITORS

M/s. Shiromany Tyagi & Co (DE0877), Chartered Accountants who were appointed as statutory auditors of the Company for the FY 2018-19 by the Comptroller & Auditor General of India (CAG). The said statutory auditors have audited the accounts of the Company for the FY 2018-19 and have given their report.

28

The members may be informed that pursuant to Section 139(5) of the Companies Act, 2013 the Comptroller and Auditor General of India (CAG) has power to appoint or re-appoint statutory auditors of the Company for the FY 2019-20 and in terms Section 142 of the Companies Act, 2013, the remuneration of the statutory auditors of the Company has to be fixed by the Company in the General Meeting or in such manner as the Company in General Meeting may determine.

The Comptroller and Auditor General of India (CAG) vide their Letter Ref. No./CA. V/ COY/ CENTRAL GOVERNMENT,GSTN(1)/89 dated 31st July, 2019 has appointed M/s. Shiromany Tyagi & Co (DE0877), Chartered Accountants as statutory auditors of the Company for the FY 2019-20 under section 139 of the Companies Act, 2013. The members in the ensuing Annual General Meeting may authorize the Board of Directors to fix an appropriate remuneration of statutory auditors for the FY 2019-20 as may be deemed fit by the Board.

8. AUDITOR’S REPORT

The Auditors’ observations and the relevant notes on the Accounts are self-explanatory and therefore do not call for any further clarification or comments thereon by the directors. The Auditors’ Report does not contain any qualification, reservation or adverse remark.

9. COMMENTS OF COMPTROLLER & AUDITOR GENERAL OF INDIA

The Comptroller and Auditor General of India (CAG) has given the Report on the Financial Statements of the Company for the year ended March 31, 2019 and offered Nil Comments and stated that “Based on their supplementary audit, nothing significant has come to their knowledge which would rise to any comment upon or supplement to statutory auditor’s report under Section 143(6)(b) of the Act”. The Report/Letter dated 2nd September, 2019 received from the Comptroller and Auditor General of India is annexed to this Report.

10. DIRECTOR’S RESPONSIBILITY STATEMENT

Pursuant to the requirement clause (c) of sub-section (3) of Section 134 of the Companies Act, 2013, your Directors confirm that:

(a) in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

(b) the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit and loss of the company for that period;

(c) the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

(d) the directors had prepared the annual accounts on a going concern basis; and

(e) the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

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11. ANNUAL RETURN

The Company has placed Annual Return for financial year 2018-19 on its website i.e. www.gstn.org as per Section 92 (3) read with Section 134 (3) (a) of the Companies Amendment Act 2017.

12. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNING AND OUTGO

In general, Your Company always emphasizes on conservation of Energy and Natural Resources and its new office is designed towards that objective. However, there is no specific activity of the Company relating to conservation of energy or technology absorption during the year under review.

There are no foreign exchange earnings and outgo during the year.

13. RISK MANAGEMENT POLICY

The Company’s management systems, organisational structures, processes, standards and behaviours together form its Risk Management Policy (RMP).

During the year, your management continuously monitored all the risks that the organization faces such as strategic, IT, legal, regulatory, reputational and other risks. The Company manages, monitors and reports on the principal risks and uncertainties that can impact its ability to achieve its strategic objectives.

14. DISCLOSURE REGARDING SUBSIDIARY/JOINT VENTURE/ASSOCIATE COMPANIES

Your company does not have any Subsidiary/Joint Ventures/Associate Companies.

15. PARTICULARS OF LOANS/GUARANTEES OR INVESTMENTS UNDER SECTION 186 OF THE COMPANIES ACT, 2013.

There is no transaction of Loan, guarantee, investment made under Section 186 of the Companies Act, 2013 and other relevant rules during the year under review.

16. CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES

During the year under review, no contract or arrangements have been entered into by the Company with any Related Party referred to in Sub-section (1) of Section 188 of the Companies Act, 2013. So, disclosure in Form AOC-2 is not required to be mentioned in this report

17. CORPORATE SOCIAL RESPONSIBILITY

Your company accepts responsibility for our business, our employees and society at large and has a strong sense of social responsibility. Your company has constituted a CSR Committee under the provisions of the Companies Act, 2013 and Rules made under and has devised a CSR Policy to undertake CSR activities. An annual report on CSR containing particulars as required as per the provisions of the Companies Act, 2013 and Rules made thereunder provided hereinbelow:

Annual Report on CSR

1. A Brief outline of the Company’s CSR policy, including overview of projects or programs proposed to be undertaken and a reference to the web-link to the CSR policy and project or programs.

Your Company is committed to undertake business in an environment friendly and sustainable manner and does not appreciate any activity that has an adverse effect on society or to the environment. Your company understands that a business operating in a society has some duties towards it as well. With an intent to discharge them, your company has devised a corporate social responsibility Policy. The policy has been made inclusive and empowers the company to undertake any activity that is in line with the Schedule VII of the Companies Act, 2013.

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Your company being a technology company has decided to discharge its corporate social responsibility by contributing to the approved technology incubator “Foundation for Innovation and Technology Transfer (FITT), Indian Institute of Technology, Delhi (IITD) for CSR expenditure for the financial year 2018-19. The web-link to the CSR policy and project or programs: www.gstn.org.

2. The Composition of the CSR Committee.Your company constituted CSR committee on 28th February 2019. The committee is comprised of 4 directors namely:The CSR Committee of GSTN is comprise of the following four (4) directors of the Company:

S. No.

Name of the Director

Category Designation/Membership

1. Dr. Rajeev Ranjan GST Council Nominee/ Additional Secretary, GST Council Secretariat

Chairman/ Ex Officio Member

2. Shri Alok Sinha State Government Nominee Member3. Ms. Meera Swarup Central Government Nominee/

Financial Advisor, DOR, MOFEx Officio Member

4. Shri Prakash Kumar CEO, GSTN Ex Officio Member

3. Average net profit of the Company for last three financial years.INR 318.94 Lakh (FY 2015-16, 2016-17 & 2017-18)

4. Prescribed CSR Expenditure (two per cent. of the amount as in item 3 above). INR 6.38 Lakh

5. Details of CSR spent during the financial year:

a) Total amount to be spent for the financial year: INR 6.38 Lakh for FY 2018-19

b) Amount unspent, if any; NIL

c) Manner in which the amount spent during the financial year is detailed below: Donation to , Foundation For Innovation and Technology Transfer, IIT Delhi

CSR Projects identified

Sectorin whichthe Projectis covered

State and district of Project coverage

Amountoutlay(budget)project orprogramswise

Amount spent CumulativeExpenditu reupto to thereporting

period

Amountspent: Direct

or throughimplementing

agency *

Direct Expenses

Amount spent on the projects or programsSub-heads: (1) Directexpenditureon projects orprograms (2)Overheads

1 Foundation For Innovation and Technology Transfer, IIT Delhi

Technology Incubator

Delhi INR 6.38 Lakh

INR 6.38 Lakh

0 INR 6.38 Lakh Direct

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18. MATERIAL ORDERS BY GOVERNING AUTHORITIES

There were no significant or material orders passed by any governing authority including regulators, courts or tribunals which could impact the going concern status and Company’s operations in future.

19. GENERAL DISCLOSURE

Your Directors state that no disclosure or reporting is required during the year in respect of the following items as there were no transactions on these items during the year under review:

i. Issue of equity shares with differential rights as to dividend, voting or otherwise, buy back of shares.

ii. Issue of shares (including sweat equity shares) to employees of the Company under any scheme save and except ESOS referred to in this Report.

iii. Change in nature of its business.

20. ACKNOWLEDGEMENTS

The Board of Directors of your Company place on record their appreciation for the continued support, guidance, co-operation and encouragement extended to the Company by Government of India, State Governments including UTs and Financial Institutions from time to time.

The Board also conveys its gratitude to all the stakeholders including shareholders and Banks for the continued trust and confidence reposed by them in GSTN throughout the year.

The Company also extends its appreciation to the Comptroller & Auditor General of India (C&AG) for their constructive suggestions and co-operation all time. Your Directors also recognize and appreciate the untiring efforts and contributions made by the employees at all levels to ensure excellent all round performance of your Company including but not limiting to successful implementation of GST regime by Government of India and acting as technology backbone for GST in India .

For and on behalf of the Board of Goods And Services Tax Network

–Sd– Place: New Delhi Dr. Ajay Bhushan PandeyDated: 5th December, 2019 Chairman

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AUDITED ACCOUNTSFOR


NOTE TO GUIDE1. Annual Accounts of a company reflects the financial position of the company during the year.

2. GSTN’s Annual Accounts basically informs about the grants received and their utilization during the year as it has yet to commence its Operations/ business.

3. Cash flow statement reflects the position of cash inflows and cash outflows during the year.

4. Audit Report confirms the true and fair view of financial Results/ positin and also certify the compliances of accounting policies/ Standards followed by GSTN management.

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Award & Recognition

GSTN received award for Exemplary Online Service.

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Notes

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