GSP-GST Suvidha Provider

GST Suvidha Provider is the web platform used by companies to file GST returns. It aids in GST compliance while making it easier to streamline the data for greater convenience and security for registration, uploading invoices, filing returns, etc.
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GSP or GST Suvidha Provider is the brainchild of the Goods and Services Tax (GST). The Government of India has appointed a total of 34 GST Suvidha Providers (GSPs). The GST Suvidha Providers are responsible for the development of a simple application for taxpayers so that they can easily communicate with the Goods and Services Tax Network (GSTN). The GSTN was incorporated on 23 March 2013 as a non-profit organisation. It holds all the data of the Goods and Services Tax (GST) for both state governments and the central government. The GST Suvidha Provider or GSP is the web platform which is used by companies to file their returns and the GSTN receives the data through the GSP. The GSP helps taxpayers to be GST compliant.

What are Application Service Providers (ASPs)?

ASPs or Application Service Providers are the platforms through which taxpayers get the support of ASP partners and are able to file their GST returns. Application Service Providers (ASPs) form end-to-end solutions in a way so that the management responsible for the purchase or sale of goods and/or services can be made through them. The ASP takes charge of preparing the GST returns after the organisations shares their data pertaining to purchase and sale of goods and/or services. After this process is completed, the returns are filed through GST Suvidha Provider or GSP.

Why are GSP Services needed?

As the transfer of data takes place between the taxpayer and the GSTN system, the GSP deals in an exceedingly high level of synchronization of data. Thus, the providers of application serve all the needs of the process such as registration, filing of returns under GST, uploading the details of invoices, etc.

Eligibility Criteria for GST Service Provider License:

In order to be eligible to get a GST Service Provider license, a company must fulfil the following criteria:

  • The company must be registered under banking
  • The company must be registered under IT
  • The company must be registered under Insurance Services
  • The company must have IT enabled services

On fulfilling the above requirements, a contract will be established between the company and the GSTN. After the establishment of the contract, a license key is generated. This license key has access to GST data. On the basis of 3 different factors, 2 batches of licenses are generated. These factors are as follows:

Criteria of eligibility The financial strength of the company Technical Capabilities Demonstration of Capabilities
GSP License Batch 1
  1. Company with paid up or raised capital of Rs.5 crore
  2. Company with a turnover of Rs.10 crore for 3 previous financial years
  1. UI/UX
  2. Invoices should be uploaded by taxpayers
  3. Security design
  4. Mobile interface
  5. Multiple mapping of roles to a single GSTIN
  6. GSTR 2 reconciliation with register
  7. E-sign/DSC integration for the signing of returns
  8. Generation of alerts to taxpayers
  9. Technically capable of handling large traffic and infrastructure to do the same
  10. Capable of handling GST return, preparation, and filing
  1. Backend IT infra work that is required for backends such as servers and databases are required to be set up and maintained in India.
  2. Policy of privacy related to data
  3. It should show data security and measures capability as per the recommendations of the IT Act.
GSP License Batch 2
  1. Company with paid up or raised capital of Rs.2 crore
  2. Company with a turnover of Rs.5 crore for 3 previous financial years
  1. UI/UX
  2. Invoices should be uploaded by taxpayers
  3. Security design
  4. Mobile interface
  5. Multiple mapping of roles to a single GSTIN
  6. GSTR 2 reconciliation with register
  7. E-sign/DSC integration for the signing of returns
  8. Generation of alerts to taxpayers
  9. Technically capable of handling large traffic and infrastructure to do the same
  10. Capable of handling GST return, preparation, and filing
  1. Backend IT infra work that is required for backends such as servers and databases are required to be set up and maintained in India.
  2. Policy of privacy related to data
  3. It should show data security and measures capability as per the recommendations of the IT Act.

Functionalities of GSP:

From filing of returns to making payments related to Goods and Services Tax (GST), the processes related to the compliance of GST can be very lengthy and time-consuming. A taxpayer might have to file a minimum of 37 returns in a year to maintain all the details pertaining to a business.

The main function of the GST Suvidha Provider (GSP) is to provide end-to-end compliance solutions for the Goods and Services Tax (GST). Some of the main functions of the GST Suvidha Providers (GSPs) can be listed as follows:

  • It offers a complete view of all the clients.
  • GSPs allow the taxpayers to reconcile the invoices related to sales and purchases and also provides the option to upload them.
  • For the purpose of filing returns, each taxpayer gets a GSP gateway which lets them interact on the GSTN.
  • It provides the provision of error-free maintenance of records and at the same time, it also provides real-time highlighting of errors.
  • The users get easy access to Management Information System (MIS) whenever required.
  • Regular updates about the taxpayers from the GST system.

GSP Ecosystem:

A platform approach is followed by the Goods and Services Tax (GST) system for the purpose of providing services to the taxpayers. In order to provide the varied GST system functions such as registration of new entities, filing of returns, uploading of invoices, and so on, Application Program Interfaces (APIs) are used. This is done through innovative solutions such as portal, enriched API, mobile applications, etc. which are either developed by them or with the help of other third-party partners. These help in making the process of GST easier for the taxpayers.

Existing GSPs:

As per the requirements to be a GST Suvidha Provider and the capability of organisations to meet the requirements, there are around 30 GSPs at present. Some of the important GSPs who are active are listed below:

  • Deloitte Touche Tohmatsu India LLP
  • Masters India Private Limited
  • Reliance Corporate IT Park Limited
  • Spice Digital Limited
  • TATA Consultancy Services Limited
  • Velocis Systems Pvt. Ltd.
  • WeP Solutions Limited
  • Bodhtree Consulting Limited
  • Ernst & Young LLP
  • Taxmann Publications Pvt. Ltd.

Is it compulsory for taxpayers to use the services provided by the GSPs and/or ASPs under the GST regime?

No, it is not compulsory for taxpayers to use the services provided by the GST Suvidha Providers (GSPs) and/or Application Service Providers (ASPs). To make the process more convenient for the taxpayers, GSTN has released an offline tool. The data required to furnish GSTR-1 such as invoices, supplies to customers, exports, and so on are recorded directly in an Excel sheet while the system is on offline mode. As per the convenience of the user, the tool can be run at certain intervals and the data can be uploaded on the GST portal. The GSTN provides this tool for free and it can be downloaded directly from the GST portal. If the taxpayer is comfortable using the offline tool, it is not mandatory for him/her to utilise the services offered by the GSPs and/or ASPs.

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