Importance of GST Suvidha Providers (GSP) and Application Service Providers (ASP)

GST Suvidha Providers


Why do you taxpayers need GSP and ASP services?

The video below explains how GST Network has set up the architecture of an entire ecosystem, and the importance of GSPs and ASPs & the roles that they are required to play.


Amit says, “One of the common question that all taxpayers are facing, is how can they manage GST compliance and filing along with GSTN appointed GST Suvidha Providers.

What is it that the GSPs will facilitate for taxpayers?

The concept of GSPs (GST Suvidha Providers) and ASPs (Application Service Providers) is relatively new, taxpayers are used to the previous regimes of tax filings. Very clearly the GST Network was architecting an ecosystem that comprised of GSPs and ASPs effectively working with taxpayers, as conduits for transmission of their invoice information to the GST Network; as well as the filing of returns. Having said that, GST Network also had plans for small taxpayers like micro SMEs and SME firms. The GSTN came up with a G2B portal that will be available publically, 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 taxpayers. Particularly in case of large taxpayers 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. While the portal is available for every taxpayer beyond a certain number of invoices, from an experience standpoint, it may not be very friendly for the larger taxpayers. In addition to that, larger taxpayers will be expecting certain customisations including integrations to their source systems for uploading reportable data. With a need of the larger taxpayers in mind, the GSTN architected this system which comprises of the GSP and ASP. The design of the ecosystem is linked to the Aadhar Platform building experience, for the government. When the Aadhar Platform was built, its intent was to have a core central platform which can be leveraged to build various applications. With the same intent, GSTN has appointed 34 GSPs which effectively act as 34 National Highways for taxpayers to route their data and return filing. The GSPs further enable ASPs and other Solution Providers in the market to build differentiated solutions for taxpayers, which take care of the various client segments that they operate in.

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