In this post, we will discuss on the GST Suvidha Provider or GSP and its modes and benefits.

We will cover the following topics:

Introduction to GST Suvidha Provider (GSP)

The Goods and Services Tax (GST) Bill is a result of the combined effort of some main participants. They are Central and State Governments, the taxpayers, and the IT platform provider i.e. Goods and Services Tax Network (GSTN), Central Board of Indirect Taxes and Customs (CBEC), and State Tax Departments.

Besides, there are other stakeholders e.g. Central and States tax authorities, RBI, the banks, the tax professionals, financial services providing companies like Enterprise resource planning and accounting software providers, etc.

The taxpayers can use the G2B portal to access the GST Systems. However, they can also use any third-party applications to access the GST Systems. It provides all user interfaces and conveniences via desktop, mobile, and other interfaces. These applications connect with the GST system via secure GST System APIs, and they are known as GST Suvidha Providers or GSP.

Who is a GST Suvidha Provider (GSP)?

GSP enables GST taxpayers to follow all the provisions of the GST law through its digital platform. It provides innovative methods or gives an effective interactive platform to access GST portal services from registration and invoicing to GST return filing.

There are two types of interactions:

  1. Interaction between the application user and the GSP.
  2. Interaction between the GSP and the GST System.

Note: The application provider and GSP are considered the same.

In the new GST regime, the GST Suvidha Providers is the GSTN endeavor to build the GSP system. This will ensure an open, transparent, and participative framework for capable and motivated enterprises and entrepreneurs.

Utilization of GST Suvidha Providers

Given below are the uses of the GST Suvidha Providers to a taxpayer:

  • Upload invoice (B2B and large value B2C).
  • Upload GSTR-1 (contain supply data), created based on invoice data and some other data provided by the taxpayer.
  • GSTR-2A download and reconciliation with purchase data in ERP.
  • File GSTR-3B based on the GSTR-1 filed, purchase data on record, and GSTR-2A information available.
  • There are returns for taxpayers like casual taxpayers or composition taxpayers.

3 Modes of Interaction

i. Filing directly on the GST portal

A GST taxpayer will access the portal to get various GST services like registration, GST return filing, and refund application. However, for services like GST return filing, a taxpayer may not know to file online. Thus, it is difficult to gather sales and purchase data from his ERP system/accounting software in the correct format. A GST Suvidha Provider is an easy platform to access the GST portal to save time and effort.

ii. ASP who is not a GSP

These entities provide required third-party applications for GST compliance. They have user interfaces via various modes (desktop, mobile, or other interfaces) for taxpayers just like any other Application Service Provider (ASP).

Such an application developer can connect with the GST portal via a secure GST system Application Programming Interface (APIs) accessed with the help of GST Suvidha Providers.

iii. ASP who is also a GSP

A government-approved Application Service Provider (ASP) is the most reliable mode. They provide the application and are also authorized to provide an interactive platform to access the GST portal. They can easily connect with the GST portal and helps avoid any third-party. Thus, it increases the speed of data processing.

List of GST Suvidha Providers

Till November 2019, there have been 3 licensing rounds for GST Suvidha Provider.

In the first licensing round, 34 companies got GSP license. In the next round, around 42 companies got the status of GSP and by November 2019, 10 companies have joined the list.

You find the complete list of GST Suvidha Provider Here.

Note: GSPs can charge the taxpayers depending on the services they offer. GSTN does not have control over them. However, GSP can decide the billing plan/ charges.

What is Application Suvidha Provider ASP?

ASP is the Application Service Provider. The Taxpayer can file their GST taxes with the help of ASP partners / existing software. ASPs develop an end-to-end solution for corporates, consultants, and taxpayers. Thus, it becomes easy to manage the sale/purchase of goods and services and GST filing.

Many companies use Application Service Provider (ASP) to file returns. However, organizations must share the detailed data of sales and purchase of Goods and Services to ASP. Then it will prepare the GST Returns and file the returns through GST Suvidha Provider (GSP).

What are GSP and ASP to the Taxpayer?

In the table below you can the difference and similarity between
GST Suvidha Provider (GSP) and Application Service Provider (ASP).

GST Suvidha Provider (GSP) Application Service Provider (ASP)
Used to file GST returns Used to file GST returns
Third-party application Third-party application
Paid services Paid services
Use digital platform Have user interfaces via various modes (desktop, mobile, or other interfaces)
Save time and money Save time and money
Promote digital India and reduces paperwork Promote digital India and reduces paperwork
Can use without any taxation knowledge Can use without any taxation knowledge
Better performance Better performance than GSP

Note: They only need to fill in all details, and it will automatically calculate returns and submitted to the GST portal.

Benefits for using an ASP who is also a GSP

  • End-to-end integration with any ERP system/ accounting software to fetch data automatically.
  • Improved and faster performance compared to any other ASP who is not a GSP.
  • GSTN integration allows smooth data flow between the application and the GST portal (avoid any third-party).
  • Only a single time login to access different locations (GSTIN).
  • Better data security and approved by GSTN.

With that, we have to the end of this post. Share your queries with us in the comment section below.

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