GSTN to Share Information with RBI’s Seamless Credit Platform
The government has granted permission to GST Network to share information on GST-registered businesses, subject to their consent, with the Reserve Bank’s ‘Public Tech Platform for Frictionless Credit.
This move aims to expedite the loan approval process for entities by leveraging shared Goods and Services Tax (GST)-related data.
The Reserve Bank of India’s subsidiary, Reserve Bank Innovation Hub, has developed the platform to facilitate the seamless flow of essential information to lenders, streamlining the credit disbursement process.
According to a notification from the Central Board of Indirect Taxes and Customs (CBIC), the “Central Government, on the recommendation of the Council, notifies ‘Public Tech Platform for Frictionless Credit’ as the system with which information may be shared by the common portal based on consent.”
The platform serves as the foundation for a comprehensive credit ecosystem, ensuring digital access to information from various data sources.
The notification highlights that financial service providers and multiple data service providers can converge on the platform using a standard and protocol-driven architecture.
With appropriate consent from the supplier/recipient, GSTN is authorized to disclose specific details submitted in the GST registration application, along with data from outward tax returns, monthly and annual tax returns, and invoice preparations.
This arrangement ensures transparency and prevents borrowers from withholding transactional information, enhancing credit efficiency by reducing costs and processing time.
Lenders gain access to authenticated monthly sales and purchase data directly from government-sanctioned sources, enabling a more accurate and timely assessment of credit risk.
The expert emphasized that GST filings will play a pivotal role for businesses seeking credit, especially in the context of future government-sponsored credit programs.