Before July 1, 2023, the GST Network would be linked to India’s ambitious Accountant Aggregator (AA) financial data exchange network. Government personnel who were in knowledge of the development reported it.
The technological link between taxpayers and the government is the GST Network or GSTN.
The change enables taxpayers to grant lenders or credit providers seamless, manual-free access to their financial data on a single platform. GST returns will therefore be regarded as a reliable statement for determining loan eligibility.
A recent project called “Account Aggregator,” or AA was created for Digital Public Infrastructure (DPI), similar to the Unified Payments Interface (UPI). According to a non-profit organisation backing it, UPI has connected over 75 lakh bank accounts to AA since its launch in September 2021. The GSTN has more than 1.4 crore registered taxpayers. Therefore, GSTN and AA system interaction will be very important. According to reports, the integration has benefited a lot of small firms.
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It will save a lot of time, paper, and effort because lenders can readily gather data for each individual from many sources. They can accurately calculate the tax due and increase legal scrutiny thanks to it. Financial organisations and individuals will be able to share data more quickly, consistently, and openly. For those who are GST-registered, digital lending will make it simpler to get credit because loan applications will only take one step.
With the introduction of GSTN as an AA, it is expected that the lengthy loan sanctioning process at banks will be rectified. Eight banks, including the State Bank of India, ICICI Bank, and HDFC Bank, have already enrolled in the AA system.
