CBIC notifies “Public Tech Platform for Frictionless Credit (PTPFC)” for consent based sharing of taxpayers credit information through the common portal, by enabling digital access to information from diverse data sources for creating a robust credit ecosystem, vide Central Tax Notification 6/2024.
This notification is issued to allow consent-based sharing of credit information under the powers conferred by section 158A of the CGST Act, 2017, and section 20 of the IGST Act, 2017.
Public Tech Platform for Frictionless Credit (PTPFC)
The PTPFC is a significant initiative aimed at streamlining the sharing of credit-related information among financial institutions, ultimately benefiting businesses and individuals seeking access to credit facilities.
This platform is an enterprise-grade open architecture information technology platform. It is conceptualized by the Reserve Bank of India and developed by its wholly owned subsidiary, Reserve Bank Innovation Hub. It provides digital access to information from various data sources for financial service providers and data service providers. This is achieved through an open, enterprise-grade IT platform with a standard, protocol-driven, open, and shared API framework.
This platform allows banks and other financial institutions to access your credit history and financial data from various sources digitally and securely. It’s like a one-stop-shop for lenders to evaluate your creditworthiness without you needing to provide extensive paperwork.
Central Tax Notification 6/2024 dated 22/02/2024: ‘Public Tech Platform for Frictionless Credit (PTPFC)’ designated as system for sharing credit information with taxpayers consent via the common portal
S.O.. (E):— In exercise of the powers conferred by section 158A of the Central Goods and Services Tax Act, 2017 (12 of 2017) and section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), the Central Government, on the recommendations of the Council, hereby notifies “Public Tech Platform for Frictionless Credit” as the system with which information may be shared by the common portal based on consent under sub-section (2) of Section 158A of the Central Goods and Services Tax Act, 2017 (12 of 2017).
Explanation:— For the purpose of this notification, “Public Tech Platform for Frictionless Credit” means an enterprise-grade open architecture information technology platform, conceptualised by the Reserve Bank of India as part of its “Statement on Developmental and Regulatory Policies” dated the 10th August, 2023 and developed by its wholly owned subsidiary, Reserve Bank Innovation Hub, for the operations of a large ecosystem of credit, to ensure access of information from various data sources digitally and where the financial service providers and multiple data service providers converge on the platform using standard and protocol driven architecture, open and shared Application Programming Interface (API) framework.
The government has allowed GST Network to share data about GST-registered businesses with the RBI’s ‘Public Tech Platform for Frictionless Credit’ after consent from the concerned taxpayers. This sharing of data will help entities obtain loans faster based on GST-related information as the platform will facilitate seamless flow of necessary information to lenders for credit disbursal.
Accordingly, GSTN shall disclose specific details submitted in the GST registration application, along with data from tax returns and invoice preparations, enhancing credit efficiency. GST filings will become crucial for businesses seeking credit and leveraging government-sponsored credit programs in the future.