Basic Concept of GSP and ASP Along with Role in GSTN

The goods and services tax runs on an IT platform, and the supportive tools like GST Suvidha Provider (GSP) and Application Service Providers (ASP) will be the significant players in the success of the tax regime. Here we try to explain these two important part of the GST network, which will be the centre platform to hold all the tax data.

What is GSP (GST Suvidha Provider)?

GSP is an acronym for GST Suvidha Provider. Through GSP, users or taxpayers can execute GST provisions through the online platform. A GSP is considered an enabler for the taxpayer to comply with the provisions of the GST law through the web platform. GSP was officially authorized by the Government. Through GSP, TaxPayers or Individuals can file their returns.

GSP’s are controlled by the government, and they operate as per the MoU. An agreement is signed between GSTN (a government body) and GSP. Through GSP and ASP, users or taxpayers file their returns online. In GSP and ASP, users or taxpayers have to fill in their necessary details and automatically returns will be calculated. It also focuses on taking out the details of the taxpayer and convert them into the GST Returns. These GST Returns are then filed on behalf of the taxpayer with GSTN via GSP.

Currently, the GSPs are in a non-functional mode as the taxpayers are opting to file GST return filing directly on the GSTN portal and not through any other medium, including GSP & ASP.

Read Also: Dealer Wise Process of GST Registration and Return Forms

GSTN (Goods and Services Tax Network)

GSTN has been created by a private company that is officially authorized by the government. The State and Central Government collectively hold a 51% share. The main objective of creating GSTN is to develop, render and maintain IT infrastructure facilities and services to the Central Government and State Government, TaxPayers and other stakeholders for the implementation of GST. Through this platform, stakeholder can file or submit their taxes. Through this network, it promotes Digital India, a paperless tax compliance regime, feasible and time-saving. GSTN is a non-profit organization that rendering IT infrastructure facilities to the stakeholders for the implementation of the Goods and Services Tax System in India.

GSTN will perform the overall functions of the GST IT system, which are mentioned below:-

• Assisting in the Registration Process
• Transmitting the returns to the Central and State Governments
• Calculation of IGST
• Confirming or matching the payment details with the banking network
• Giving MIS reports or Data to the Central and State Government and which includes all information of a taxpayer
• Giving an analysis of the taxpayers’ profile
• Running the matching engine for matching, reversal and reclaim of the input tax credit.
• Generate business intelligence and analytics.
• GST is going to be implemented from 1st July 2017.

Recommended: GST Online Payment Guide for Petty Tax Payers India

Role of GSP in GST

GST system is going to implement a G2B portal, which will allow taxpayers or users to approach the GST system. Maybe it is not the best option for several taxpayer organizations and which may instead opt for availing services provided under third-party applications. G2B will provide convenience to users and can access via desktop, mobile, and other interfaces, and they’ll be able to interact with the GST system.

What is ASP (Application Suvidha Provider)?

ASP is an acronym for Application Service Provider. Taxpayer or users can file their GST taxes with the support of ASP partners or existing software. ASPs can develop an end-to-end solution for corporates, consultants, and taxpayers. Through ASPs, the taxpayer and consultants can manage the sale or purchase of goods and services and GST filing.

A large number of companies have an option to file returns via Application Service Provider (ASP). In ASP, organizations or businesses must have to share the detailed data of sales and purchases of Goods and Services with the ASP. After the ASP, providers will prepare the GST Returns and file the returns through GSP (GST Suvidha Provider).

Role of ASP in GST

ASP will play the vital role in filing returns as well as saving the time of users. It collects all data or information from the taxpayers or users and then converts it into tax returns. ASP will take care of five roles which are mentioned below:-

Data Protection & Privacy:- ASP will handle most of the sensitive data of an organization. This data includes who do you sell and where? What do you sell? How much do you sell and at what price? It’s not all. An ASP has also required information about purchases. Overall, an ASP will gather data or information from the taxpayers for filing the returns.

Data Verification:- The details you submitted to ASP will be used for filing GST Returns. Make sure that the details you have provided are true and authenticated as belonging to you without a doubt. Any misleading details or data can lead to incorrect returns, which will lead to liabilities for the tax filing entity. The responsibility of filing correct returns lies with the company and its corporate officers.

Data Archiving & Retrieval:- You ask yourself whether ASP will provide long-term Data Archiving and Retrieval? At ASP, you will store data for 8 years beyond the date of filing of the annual returns for the year.

Audit Features: – ASP will maintain all information details in the system, starting from the point of upload till the creation of the returns. Cross-check the audit features that are available as a part of the ASP Platform.

Application and Process Control:- Filing a return is the responsibility of the corporate officers. So it’s essential to establish that an ASP will provide you with full control of the process. Filing accurate returns is essential in the context of India because raising all disputes in case of inconsistency is the responsibility of the filer. Not filing the dispute within a particular time can lead to a material impact on the net tax liability.

GSP and ASP Relation to the Taxpayer

Taxpayers or users file their returns through the GSP and ASP modes. Both GSP and ASP can be treated as third-party application, it will charge some cost from the taxpayer or user for filing returns. From the taxpayer’s point of view, GSP and ASO will save time, money, promote digital India and reduce paperwork. Through GSP and ASP taxpayers can file their returns easily without any knowledge of taxation, they just have to fill in all the required details and returns will be calculated automatically and submitted to the GST portal.