Overview of Notification No. 6/2024 – Central Tax

Simplified Explanation of Notification No. 6/2024 – Central Tax

Purpose of the Notification:

This notification designates a specific system with which information shared by taxpayers can be accessed and utilized, based on their consent, through a common portal.

Key Details:

1. System Designation:
   • Name of the System: Public Tech Platform for Frictionless Credit
   • Context: This system has been chosen for sharing information as per the provisions of the Central Goods and Services Tax (CGST) Act and the Integrated Goods and Services Tax (IGST) Act.
2. Legal Basis:
   • Laws Referenced: Section 158A of the CGST Act, 2017, and Section 20 of the IGST Act, 2017.
   • Purpose: To facilitate the consent-based sharing of information between the common portal and other systems.
3. Explanation of the System:
   • Nature: An enterprise-grade, open architecture IT platform.
   • Conceptualized by: Reserve Bank of India (RBI) as part of its policy document dated August 10, 2023.
   • Developed by: Reserve Bank Innovation Hub.
   • Function: The platform allows digital access to information from various data sources, enabling a large ecosystem of credit. It uses standard protocols and open APIs to facilitate interaction between financial service providers and data service providers.

Example:

• Scenario: A business needs to share GST-related information with various financial institutions. With this notification, the business can consent to share their data via the Public Tech Platform for Frictionless Credit. This platform ensures that the data is shared efficiently and securely, making it easier for financial institutions to access the required information.

Summary:

• What: Notification designates the Public Tech Platform for Frictionless Credit as the approved system for sharing taxpayer information.
• Why: To facilitate secure, consent-based data sharing through a standardized digital platform.
• How: The platform enables data sharing using a standardized API framework, ensuring smooth integration and access for various financial and data service providers.