The Goods and Services Tax Network (GSTN), which is the technology backbone of the GST system in India, has introduced a new feature on the GST Portal. This feature enables taxpayers to geocode their principal place of business address, which means that the address is converted into geographic coordinates (latitude and longitude) using a mapping tool. The concept of geocoding has been adopted by the United States, the United Kingdom, Canada and Brazil for taxation purposes. However, the extent to which geocoding is used for tax purposes depends on the country and its tax laws prevailing in India.

The purpose of this feature is to ensure the accuracy of address details in GSTN records and streamline the address location and verification process. This is important because the accuracy of the address details is crucial in determining the applicable GST rates, place of supply rules, and other compliance requirements. By allowing taxpayers to geocode their principal place of business address, the GSTN is helping to make the address verification process more efficient and accurate.

Accessibility 

This functionality is available on a portal called the FO portal, which allows taxpayers to access and update their geocoded addresses. To access this functionality, taxpayers need to go to the “Services/Registration” tab on the FO portal. Once there, they will be able to view the system-generated geocoded address, which has been automatically generated based on available data. Taxpayers then have the option to either accept this address or update it to better reflect their situation. However, if the system-generated geocoded address is not available for a particular taxpayer, the system will simply display a blank space, allowing the taxpayer to directly update the geocoded address.

After a taxpayer has accepted or updated their geocoded address on the FO portal, the new information will be saved separately under the “Principal Geocoded” tab. This tab is where the taxpayer can view their geocoded address details in one central location. In order to view this information, the taxpayer would need to log in to the portal and navigate to their profile. Once there, they would select the “Place of Business” tab and then look for the “Principal Geocoded” heading. Under this heading, the taxpayer would be able to view the updated geocoded address details that were previously saved.

It is pertinent to note that updating the geocoded address details on the FO portal will not change any existing addresses that are associated with the taxpayer’s account. Instead, it simply provides an additional piece of information that can be used for tax purposes, helping to ensure that the taxpayer’s location is correctly recorded. Once a taxpayer has submitted their geocoded address details on the FO portal, the geocoding link will no longer be visible. This is because the process is considered a one-time activity. Additionally, the functionality will not be visible to taxpayers who have already geocoded their addresses through either a new registration or core amendment process.

This functionality is currently available for various types of taxpayers, including normal taxpayers, composition taxpayers, SEZ units, SEZ developers, Input Service Distributors (ISDs), and casual taxpayers. This means that all these taxpayers can access the geocoding functionality and update their geocoded address details as needed. Additionally, this functionality is available for taxpayers who are currently active, cancelled, or suspended. Geocoding functionality is being rolled out in phases, and as of now, it is only available to taxpayers registered in Delhi and Haryana. However, it is believed that within a year or two it will be a fully functional module truly integrated in the GSTN.

The introduction of the geocoding functionality on the GST Portal is a welcome development for taxpayers. However, in developing countries and regions with limited technological infrastructure, geocoding may not be as widely available or accurate due to a lack of data or resources. Still, efforts are being made in India to improve geocoding capabilities in these areas through various digital initiatives. GEO coding is already implemented by Corporate Laws in India, and sooner or later we may see both ministries sharing seamless data. Digitalisation in tax technologies like geo-tagging will ensure accuracy and transparency in long run.