GST Digital Signing Solution

The Goods and Service Tax (GST) is a major reform in the indirect taxes category for India. This tax reform will help India convert from a data-poor country to a data-rich country. This is a mutually agreed taxation system between the Central government and State governments. There are two major bodies in the GST architecture – GSTN and GSP.

GSTN: GSTN will manage the entire IT system of the GST portal, which is the master database for everything in GST. The government is going to use this portal to track every financial transaction and provide taxpayers with all services.

GSP: GSP is an abbreviation for GST Suvidha Provider. It is an enabler for the taxpayer to comply with the provisions of the GST law through a web platform. GST system is going to implement G2B portal which allows taxpayers or users to approach GST servers. Several taxpayer organisations may instead opt for availing services provided by third-party applications, i.e. ASPs. G2B portal provides convenience to users and can be accessed via desktop, mobile and other interfaces. It also enables users to interact with the GST system.

ASP: ASP is an abbreviation for Application Service Provider. Taxpayers can file their GST returns with the support of ASP partners or an existing software. Through ASPs, the taxpayer and consultants can manage the sale or purchase of goods and services as well as their GST filing. A large number of companies take the option to file return via Application Service Provider. The organisations or businesses must share the detailed data of sales and purchase of goods and services to the ASP. Then the ASP providers prepare the GST returns and file the returns through GSP (GST Suvidha Provider). ASP handles a lot of the sensitive data belonging to organisations.

Challenges:

To overcome challenges faced by GST architecture and the two major GST bodies:

  • Data protection and privacy
  • Data verification
  • Data archival and retrieval
  • Audit features
  • Application process control

Solutions:

  • The ASP applications would process various tax documents and they would need to upload the same on the GSTN server via the GSP.
  • During the above process, tax documents need to be digitally signed by the ASP-GSP before uploading on the GSTN.
  • Digital signing is a cryptographic process which could be best achieved by using a Thales nShield Connect HSM for the lakhs of invoices that need to be processed.
  • In order to perform digital signing of documents, you need to secure the Private Key of the organisation, which is a Digital Signing Certificate (DSC) issued by a Certifying Authority for an authorised signatory on behalf of the organisation.

Benefits:

  • Complying with certifying authority guidelines of storing the DSC of an individual on behalf of organisations in an HSM device
  • Suiting latest compliance requirements with a FIPS 140-2 Level 2 or Level 3 HSM device and the Private/Public key pair needs to be generated in an HSM
  • Securing management and protection of encryption & signing keys

Required Products:

  • General Purpose HSMs

 

 

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