A taxpayer is required to undertake compliance under the GST regime for payment of tax and filing returns at regular intervals. Such a compliance demands the taxpayer to file return forms, upload invoices, generate challans etc on the GST portal.
This compliance becomes quite challenging for the large taxpayers who have numerous invoices to be uploaded on a monthly basis. Therefore, such taxpayers require some sort of automation in order to make return filing seamless.
This is where GST Suvidha Provider can play a great role to make GST compliance easy and convenient for the taxpayers. So, let’s understand who is a GST Suvidha Provider, its functions, GSP concept and an overview of the GSP ecosystem.[/vc_column_text]
GST Suvidha Provider Meaning
GSP stands for a GST Suvidha Provider. A GST Suvidha Provider is an IT, ITES, BFSI company having IT capability that provides a convenient web based platform to the taxpayers and other stakeholders.
Such a platform helps the stakeholder to interact with the GST system for meeting compliance, like filing returns, uploading invoice details, applying for GST registration application etc.
Furthermore, an entity authorized to function as a GSP by the government can be the one that is:
- only functioning as a GSP and is not an Application Service Provider (ASP)
- both a GSP as well as an Application Service Provider (ASP)
So, for GSPs to function seamlessly, the GSTN has developed a GSP ecosystem. Such an ecosystem has been put in place in order to have an open, transparent and a participative framework for enterprises as well as entrepreneurs.
GST Suvidha Provider List PDF
GSTN has onboarded GST Suvidha Providers on the basis of a selection process. This process evaluated the candidates for GSPs based on their financial ability and IT capability.
Such a process was undertaken to ensure that the GSPs deliver the necessary services to the taxpayers for becoming GST compliant in the new GST regime. Thus, businesses may avail the services of the GSPs as per their need.
You can view the list of GSPs selected by GSTN in the following list of links:
GST Suvidha Kendra
GST Suvidha Kendra is one stop gateway which will help SMEs to file their GST Returns on time at much lower fees. GSK is a GST Facilitation Centre appointed and approved by GSPs.
Multiple CBIC GST Seva Kendras are available locally for taxpayers, to resolve their local issues in the local language(s). The information thereof along with contact details of each Helpdesk is available to the taxpayers on the CBIC portal. These Seva Kendras also accessible via phone, via email or can be visited in person by a taxpayer.
What is GSTN?
GSTN stands for Goods and Services Tax Network. It is a non-profit, non-government company jointly promoted by central and state governments. This organization is responsible for providing shared IT, infrastructure and services to central and state governments, taxpayers and other stakeholders.
All the front – end activities carried out by a taxpayer on the GST portal like filing returns, making tax payments, registering for GST etc. are provided by the GSTN. This means that GSTN acts as an interface between the government and taxpayers.
On the other hand, statutory functions like approval of registration, assessment of return, investigation and audit etc. shall be conducted by the tax authorities of states and central government like CBEC.
Who can Become a GSP?
|S.No||Type of Organization||Pre – Qualification Criteria||Relevant Documents Required|
|1.||A company registered in India under the Indian Companies Act 1956 or 2013||An IT / ITES / BFSI company having IT capability with the following parameters:|
|2.||An undertaking owned and managed by Central / State Government (PSU) OR An Authority constituted under the Central / State Act/Special Purpose Organization constituted by Central/State govt|
|3.||Partnership registered under the India Partnership Act 1932 or under the Limited Liability Partnership Act, 2008|
GST Suvidha Provider License
All GST Suvidha Provider applicants must meet the eligibility criteria mentioned above strictly in order to adhere to obtain GST Suvidha Provider License. GSTN, the nodal agency for meeting all the IT infrastructure requirement for implementing GST, had invited applications for GST Suvidha Providers.
The applicants who fulfilled the above mentioned criteria or requirements were selected as GSPs. Thus, a contract between the company and the GSTN was established to work as GSPs.
Once the agreement was establishment, a license key was generated and provided to the GSPs. This license key has access to GST data. 2 batches of licenses are generated on the basis of 3 different factors.
The GSP ecosystem comprises of an (i) interactive web platform for GST compliance (GSP application), (ii) GSP-GST Server and (iii) the GST server.
Therefore, GSTN has come up with the GST API. This API would help a government approved ASP to build applications and provide an interactive platform to the taxpayers in order to access the GST portal. The license of this API lies only with the government approved ASP (that is a GSP).
Such an application provides GST related functionalities like uploading invoice data, filing return etc to the taxpayer. Now, as a part of the GSP ecosystem, three kinds of interactions are possible between the different stakeholders and the GST System. These include:
Direct Access to GST Portal
This is one of the ways through which a taxpayer can interact with the GST portal. Under this, the taxpayer can directly access the GST portal to meet GST compliance. The GST compliance may include filing returns, uploading invoices, generating challans, maintaining ledgers etc.
Now, for few of the compliance requirements like return filing, a taxpayer may not be well equipped to use the GST portal. He might face a challenge in collecting data related to the inward and outward supplies from his current accounting software in the requisite format demanded by the GSTN.
Furthermore, he may also have to undertake manual effort in preparing such returns. So, the taxpayers can seek the help of a GSP to meet all such compliance.
Access GST Through an ASP that is not a GSP
This is one of the indirect ways through which a taxpayer can interact with the GST portal. There are entities who are ASPs and develop third party applications for taxpayers to meet the GST compliance. These ASPs create applications using the secure GST API provided by the GST Suvidha Provider who has the license to such an API.
Furthermore, the ASPs develop the third party applications for GST compliance on varied interfaces such as desktop, laptop, mobile etc.
Access GST Through a GSP Who is Also an ASP
The safest way to access the GST portal is through a GSP who is also an ASP authorized by the government.
In other words, these entities are GSPs who are authorized to function as a GSP by the government and are given the license to the GST API. Besides being a GSP, they are even ASPs who develop the application using the GST API for helping taxpayers meet compliance.
The benefit of interacting with the GST system via this way is seamless interaction with the portal as well as no dependency on the third party.
Now, given this, the interaction between the various stakeholders and GST portal takes place in the following way:
- The first interaction takes place between the application user and GSP. As a part of such interaction, the taxpayer uploads information like invoice details at regular intervals in the GSP application order to meet the GST compliance.
- The second interaction takes place between the GSP and GST system the moment the taxpayer uploads invoice details. As a result of such an interaction, the GSP via its application provides the following services to the taxpayer:
Role of GST Suvidha Provider
A variety of taxpayers including SMEs, large enterprises, micro enterprises require different kinds of facilities. The GSPs provide following services to the taxpayers to help meet the GST compliance effortlessly:
- facilitate uploading of invoice data including B2B and large value B2C
- help upload GSTR 1 return having outward supply data*
- provide the facility of downloading data related to inward supplies in the form of draft GSTR 2**
- allow matching of purchase register with draft GSTR 2 downloaded from the GST portal***
- help in maintaining individual business ledgers including sales and purchases ledger
- allow integration of accounting packages or ERP softwares with GST system
converting purchase or sales register data of the taxpayer in GST compliant format.
*Such a return is created based on the invoice and other data uploaded by the supplier
**Such a draft return is created on the GST portal based on the GSTR 1 filed by the corresponding suppliers.
***Compare the two and upload the final GSTR 2 on the GST portal
enable taxpayers to file GSTR 3 created by the GST portal based on GSTR 1, GSTR 2, tax paid and other information.