Opportunities and Impact: GST With Big Data

Opportunities and Impact: GST With Big Data

The Goods and Service Tax Network (GSTN) company is going to be handling 300 crore invoices each month from a total of 80 Lakh users. This represents a massive digitization at all levels of the Indian economy. As mid-sized companies raise their IT expenditure, the possibility of making major strides towards the mining of data for improving business decision-making can be accelerated to faster fruition. The Goods and Services Tax has been built upon a software infrastructure that is designed to drive users to be completely aware of their data. When a company wants to get relevant information from the GSTN, Big Data will play a vital role in the analysis and evaluation of the GST data trove.

GST Suvidha Providers (GSPs)


Software solution providers would also need Big Data capabilities to support their customers. In the management of records, a Big Data solution would have the required capabilities to identify and prevent mismatching of records through the entire business hierarchy. GST Suvidha Providers who are involved in this process will need Big Data capabilities to deliver a foolproof solution to their clients. The GSPs will build upon GST APIs which are RESTful, JSON based and Stateless. All the tasks that are implemented by GSPs are made error-free with the aid of Big Data analytics.

Keeping Invoices Under Scrutiny


In the GST system of invoices needing to be matched between supplier and buyer, a Big Data platform would be able to alert users on issues with any incompatibility between invoices at the right time. All issues related to input tax credit that will be triggered after the supplier has made the payment or failure to make the payment can be analyzed and evaluated by a Big Data system.

Application Service Providers(ASPs)


Applications that are built upon the GSTN will be used by clients to manage their invoices. The analytics of the data by the ASPs will help businesses develop their decision-making models with the availability of more relevant data in real time. Artificial Intelligence can be applied to aid users as they enter their invoices. Automation of returns, synchronization between the user system and the GSTN, and monitoring of situations like Auto Returns can be implemented better with Big Data Analytics. Cloud-based solutions would need to apply a Big Data approach. This will be the key business segment where new companies can deliver Big Data Solutions to their customers.

Research on Pricing



As companies need to work out the impact of the new tax rates on their pricing, a Big Data system will allow for comprehensive analysis of all aspects before arriving at optimum pricing. This will become essential in sectors where prices are very crucial in determining sales and returns. The supply chain will be analysed and optimum alternatives can be devised with the aid of Big Data analysis.

Identify Offenders


The government is using Big Data systems to scour through the vast data collection that marks the centralized approach of GST. According to reports, the Government has used tax data from the last two years to prepare a list of companies that might be implementing practices to avoid paying GST. With a Big Data engine, the Government has identified companies that do not fit into regular patterns in terms of taxation and transition to GST.

Ensure Security


Registered users would need to get top-notch security which is delivered by a Big Data solution, while it becomes a major challenge for the Government. The guarantee of secure invoices in the user’s systems and with the GPSN can only be assured by a robust platform that is continuously churning out alerts. With millions of users logging into the GSTN Network, it is paramount to have the always-on presence of a Data analytics platform. The GSTN stores encrypted data at four locations around the country.

More Accurate Picture of the Economy


This is one of the most important areas where Big Data will deliver vastly superior outcomes. The confusion on GDP will soon be eliminated as regular reports are created by the GSTN on the state of the economy.

Job Market



The application of Big Data to the GST system can deliver new jobs at all levels from the Government to users and consultants. Statistics on employment can now be delivered more accurately by making use of the data that is always streaming into the GSTN.

Tax Consultants


When registered to the GSTN, tax consultants will be having the ability to generate analytics with a consolidated view of all their clients on the GSTN.

Banking System



Banks are now going to have separate data segregation and accumulation at the level of each branch as they need to report separately for each branch under GST. This will lead to the creation of silos. Big Data can help merge them all into one seamless system for reporting and analysis.

GST Help Desk


The questions that consumers ask of expert groups and consultancies can be put through a machine learning system to develop an automated response system for traders and businessmen seeking answers on GST.

Digitization and Data


With most companies still running on rudimentary IT infrastructure, the possibility of getting directly into the Big Data plane can be achieved by cloud-based service providers, with basic features enabled at the outset. Mid-sized and larger companies who are ramping up their ERPs to work on the GSTN can also make the transition to Big Data Utilization in the dynamic environment that has been triggered by GST. At the Governmental level, it is now all about the precision and the speed that Big Data is going to bring into the administrative and monitoring processes.

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  • Charlie Watts

    Taxation companies and agencies should harvest Big Data in their operations. That would help them to transform data into value to find more about what's behind the numbers.

  • Goran Vulic

    Nice work ... thanks a lot

  • Peter Milne

    The significance of big data processing by taxation seems to be that, it can support not only organisational decision making , but also social decision making.

  • Hosanna Arulson


  • Thomas Braxton

    A very helpful and interesting post, I wonder how Big Data will one day be able to tell taxation regulators the trends in fraud and money laundering so that we will be able to stop them.

  • Adam


  • Keshav Yadav

    Big data will definitely improve the collection of taxes from citizens while reducing waste in the system.

  • Charles Tasher

    Performing accurate customer due diligence won't be an easy task for sure with ensuring compliance reporting and not overpaying.

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Nikunj Thakkar

Tech Expert

Nikunj is the CEO of DataOne Innovation Labs. His company provides architectural solutions for big data problems faced by enterprises. His main areas of focus are real-time data processing, machine learning, NLP, cloud computing and high availability architecture design. Nikunj holds a master’s degree in Information Technology from the Dhirubhai Ambani Institute of Information and Communication Technology.


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