What is GST Suvidha Provider, ASP and their Benefits

Category : | Author :MasterGST

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The rollout of the GST Bill will be a collective effort of the Central and State Governments, the tax payers and the IT platform provider i.e. GSTN, CBEC and State Tax Departments. Besides these main participants there are going to be other stakeholders e.g. Central and States tax authorities, RBI, the Banks, the tax professionals (tax return preparer, Chartered Accountants, Tax Advocates, STPs etc.), financial services providing companies like ERP companies and Tax Accounting Software Providers etc.

The primary aim of GSTN is to provide a robust IT infrastructure and essential services to facilitate the implementation of the Goods and Services Tax (GST). The GSTN plans to achieve this through a network of GSPs (GST Suvidha Provider) and ASPs (Application Service Provider).

What is GST Suvidha Provider (GSP)

GSTN has developed a robust IT platform. The GST System will have a G2B portal for taxpayers to access the GST Systems, however, that would not be the only way for interacting with the GST system as the taxpayer via his choice of third party applications, which will provide all user interfaces and convenience via desktop, mobile, other interfaces, will be able to interact with the GST system. The third party applications will connect with GST system via secure GST system APIs. All such applications are expected to be developed by third party service providers who have been given a generic name, GST Suvidha Provider or GSP.

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What is ASP

To have an automated seamless compliance under GST, software based applications to help tax payers do timely and convenient compliance are being developed. These players are called “Application Service Provider (ASP)” and these third party applications will connect with GST system via secure GST System APIs. The service providers developed these secure channels are called “GST Suvidha Provider (GSP)”. GSPs and ASPs will provide much needed support to taxpayers in the IT ecosystem for GST..

The most important part of ensuring a complete GST compliance will be filing the invoice data with the GST Network (GSTN).

Role of ASP

ASPs will focus on taking taxpayers’ raw data on sales and purchases and converting it into the GST returns (in case of multiple registrations, it is a huge task manually). These GST returns, or GSTRs, will then be filed on behalf of the filer with GSTN via the GSP.

ASPs will act as a link between the taxpayers and the GSPs. The GSTN client ID and password for ASP will be generated by GSP from the portal, which will be provided by GSTN. It’s a kind of sub-license generation.

A GSP may also offer the services of an ASP to meet a client’s particular data processing requirements, and provide customized solutions to a large number of organizations. This provides combined GSP and ASP support

The ASPs will mainly be responsible for providing the taxpayers with an interactive secure application where they can upload their invoices, reconcile mismatches and file their returns. ASPs may also provide innovative solutions like web portals, mobile apps and enriched APIs to make the entire GST compliance procedure for the users very easy to adopt. The application developed by ASPs will help taxpayers to interact with the GSTN and create invoices in the supported format. This will necessarily require a computer connected to the internet from where the invoices are being generated.

Role of GSP

GSP provides a secured tunnel which feeds in data from ASP (in other words, ASP’s output becomes input for GSP), submits it on GSTN and generates acknowledgement. GSPs will basically act as channels that will transfer the information from the GSTN server to the ASPs, that will be responsible to disseminate it.

In nutshell, ASP-GSP will do following activities:

  1. Invoice data upload (B2B and large value B2C).
  2. Upload GSTR-1 (return containing supply data) which will be created based on invoice data and some other data provided by the taxpayer.
  3. Download data on inward supplies (receipts or purchase) in the form of Draft GSTR-2 from GST Portal created by the Portal based on GSTR-1 filed by corresponding suppliers.
  4. Do matching of purchases made and that downloaded from GST portal. Finalize the same based on his own purchase (inward supply data) and upload GSTR-2.
  5. File GSTR-3 created by GST Portal based on GSTR-1 and 2 and other info and tax paid.
  6. Meet other applicable compliance.

An important point to note here is that whether a taxpayer goes for direct access to G2B portal or chooses the more comfortable option of using GSP services, a provision is made in the IT ecosystem under GST for the taxpayer to have complete control, security, and privacy while interacting with the GST system.

Benefits of meeting GST compliance through ASP-GSP

  1. Consumption across technologies and platforms (mobile, tablets, desktops, etc.) based on the individual requirements.
  2. Automated upload and download of data.
  3. Ability to adapt to changing taxation and other business rules and end user usage models.
  4. Integration with customer software (ERP, Accounting systems) that tax payers and others are already using for their day to day activities.
  5. Assisting in input tax credit matching.

ASPs can come up with an application to provide GST filing facility in existing software, or, with the help of ASP partners, they can develop an end-to-end solution which corporate, consultants, and taxpayers can manage their sale/purchase and GST filing: e.g., an offline utility-like spreadsheet; taxpayers could fill out their invoice details and then upload it on the GST portal for processing.

Similarly, for tax consultants (TC), ASPs can provide a dashboard that displays a list of all his/her clients. Clicking on a client would give the TC a snapshot of the client’s actions/ pending actions.

To learn more about how MasterGST can help you with GST automation, contact us through our portal http://mastergst.com/

To open GST Suvidha Kendra, click here for more details.

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