RBI Converts GSTIN Into a Financial Data Provider Under AAF


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Arpit Kulshrestha

The Reserve Bank of India (RBI) comprises the GSTN as an information provider concerned to finance beneath the AAF (Account Aggregator Framework). The latest move has the motive to ease the flow of cash as per the lending to micro, small and medium-sized enterprises (MSMEs). The council’s revenue shall be the regulator of the GSTN to provide the returns on the GST.

GST returns furnished in GSTR-1 and GSTR-3B shall be the financial data. In the year 2016, the RBI discharged the framework for the enrollment and function of the account aggregator framework in India.

The account aggregator would provide the sharing of the information between the persons and the financial institutions. The lenders could see the same data prior to furnishing the loan to the person or the entity. Nearly a billion accounts, 17 banks, and 48 non-bank lenders would make their account aggregator framework enabled.

What is the Simple Meaning of the GSTIN?

GSTIN is a unique identification number for all business entities registered to collect GST. As part of the state VAT law, every registered business is assigned a TIN number by the state tax department. In the same way, the Central Board of Excise and Customs (CBEC) assigns a service tax registration number to a specific service provider.

Under the GST tax scheme, all businesses are consolidated under one taxation authority and their multiple identification numbers are replaced by one registration number called the GSTIN. One of the main aims of providing GSTIN numbers is to streamline administrative processes, improve compliance, and increase tax collection.

Disclaimer:- “All the information given is from credible and authentic resources and has been published after moderation. Any change in detail or information other than fact must be considered a human error. The blog we write is to provide updated information. You can raise any query on matters related to blog content. Also, note that we don’t provide any type of consultancy so we are sorry for being unable to reply to consultancy queries. Also, we do mention that our replies are solely on a practical basis and we advise you to cross verify with professional authorities for a fact check.”

Published by Arpit Kulshrestha

Arpit Kulshrestha seeks higher interests in financial services, taxation, GST, I-T, etc. Writes articles with depth knowledge and is extensive for the same. The resources provide effective articles for the products of SAG infotech which provides taxation and IT software. Writing from observations and researching makes his articles virtuous.
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