Before July 1st, GSTN and Account Aggregator Linking: Officials
Reducing the difficulty of credit disbursement by assisting small businesses in authorising lenders to access financing info
According to senior officials overseeing the project, the integration of the country’s ambitious financial data sharing network, Account Aggregator, with the Goods and Services Tax Network (GSTN), the digital interface between the government and taxpayers, is scheduled to occur before July 1. Due to the ability for small businesses to permit lenders to access their tax records along with other financial data on a single platform, this can significantly reduce friction in credit disbursement.
The Unified Payments Interface (UPI) and other Digital Public Infrastructure (DPI) initiatives introduced by India in recent years include the AA system. Since its September inception, it has been linked to more than 75 lakh bank accounts.1)21, ac-cording to BC Mahesh, cofounder, and CEO of Sahamati, the non-profit that is promoting AA.
There are around 1.4 crore registered taxpayers in the tax network GSTN.
Officials said that lenders might use GST reports as a financial statement to evaluate the financial health of small businesses.
GSTN will become online on AA in a short while. After that, the numbers would rise even more if GSTN payees or small firms start applying for loans and can do so through AA, according to Mahesh.
GSTN officials responded to ET’s inquiries about the project by saying that the network will launch on the AA system before July 1. They did not provide a specific launch date, however.
Banks and lenders can use GST returns as a financial statement to evaluate the financial health of small firms, according to authorities from the Finance Ministry. By making it simple for lenders to extract information from GST returns, along with borrowers’ savings, pension accounts, and other aggregators, they said, “this will help in seamless sharing of taxpayers’ account information and will help them in saving paper-work.”
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