Overview of GST Suvidha Provider (GSP)

Goods and Service Tax Network (GSTN) introduced and established the web platform called GST Suvidha Provider (GSP) to help the taxpayers to comply with the provisions of GST. In simple words, GST Suvidha Provider helps various companies to file GST returns and streamline the data for greater comfort and security for registration, uploading forms, invoicing, filing returns etc.

Scroll down below to know more about GSP.

Who is a GST Suvidha Provider (GSP)?

GSP or GST Suvidha Provider is the invention of the Goods and Services Tax (GST). The Indian Government has selected a total of 34 GST Suvidha Providers (GSPs). The GST Suvidha Providers are accountable for the growth of a simple application for taxpayers so that they can easily connect with the Goods and Services Tax Network (GSTN). The GSTN was incorporated on 23 March 2013 as a non-profit organization. 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.

Eligibility to become a GST Suvidha Provider

In order to be eligible to become a GST Service Provider, 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.

Who is an Application Service Provider?

In order to ensure effective automated compliance under GST, software based applications are being developed to help tax payers to do timely and convenient compliance. Such players are termed “Application Service Provider or ASP”. These third party applications connect with GST system through secure GST System APIs. The service providers who develop these secure channels are called GST Suvidha Provider. GSPs and ASPs will provide much needed assistance to taxpayers in the IT ecosystem for GST.

Areas addressed by GST Suvidha Providers

  1. Upload invoice data (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. GSTR-2A download and reconciliation with purchase data accounted on ERP.
  4. File GSTR-3B based on the GSTR-1 filed, purchase data on record and GSTR-2A information available.
  5. Similarly, there are other returns for other categories of taxpayers like casual taxpayer or composition taxpayers.

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.

List of GSPs in India

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.

Takeaway

In India, there have been 3 rounds of empanelment/licensing for GST Suvidha Providers by the GSTN until Nov 2019. The 4th round is held for empanelment till April 2021. 34 companies were given GSP licenses during the 1st round of allotment, followed by 42. 10 were approved in the last round.

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