Importance of GST Suvidha Providers (GSP) and Application Service Providers (ASP)
Why do you tax payers need GSP and ASP services? One of the biggest questions that tax players are faced with now as the last date for the 1st return filing approaches. The video below explains how the GST Network has set up the architecture of the entire ecosystem, and the importance of GSPs and ASPs & the roles that they are required to play!
One of the common questions that is facing all the tax payers today is how can they manage GST compliance and filing along with why has GSTN appointed GST Suvidha Providers in terms of compliance.
What is it that the GSPs will facilitate for the tax payers? The concept of GSPs and ASPs, i.e GST Suvidha Providers and Application Service Providers is relatively new which tax payers are not used to in the previous regimes of tax filings. Very clearly the GST Network was architecting an ecosystem that comprised of GSPs and ASPs effectively working as conduits for tax payers for transmission of their invoice information to the GST Network; as well as filing of returns to the GST Network. Having said that, GST Network also had plans for small tax payers like micro SMEs and SME firms. The GSTN came up with a G2B portal that will be publically available to them free of charge. This portal will enable them to carry out their invoice information upload to the GST Network and carry out their return filing every month. While this portal is accessible to everyone, the GST Network believed that they needed to build an ecosystem that allowed for innovative applications to be made available to tax payers. Particularly in the case of large tax payers like corporates and MNCs which will have thousands of invoices to be uploaded to the GSTN every month and carry out reconciliation for filing returns. So, while the portal is available for every tax payer beyond a certain number of invoices, from an experience stand point, it may not be very friendly for the larger tax payers. In addition to that larger tax payers will be expecting certain customizations including integrations to their source systems for uploading reportable data. With that need of the larger tax payers in mind, the GSTN architected this system which comprises of the GSP and ASP. The design of the ecosystem actually is linked with the experience of the government in building the Aadhar Platform. When the Aadhar Platform was built, it was built with the intent of having a core central platform which can be leveraged to build various applications. With that same intent, GSTN has appointed 34 GSPs which effectively act as 34 national highways for tax payers to route their data and return filing. The GSPs as they as conduits further enable ASPs and other solution providers in the market to build differentiated solutions for tax payers which takes care of the various client segments that they operate in.