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

GST Suvidha Providers


Why do taxpayers need GSP and ASP services?

The video below explains how GST Network has set up the architecture of an entire ecosystem, the importance of GSP and ASP solutions, and the roles that they are required to play. The GST video about the roles of GSPs and ASPs will provide answers to some of the queries in the minds of the taxpayers who are not yet very clear with the features and benefits of the tax regime.


Amit Parmar, SVP – GST Platform at Vayana talked about the role of GSPs and ASPs; and their impact on the GST-led economy. Stressing on the importance of GSPs in a GST-governed environment, Amit says, “One of the common question that all taxpayers are facing, is how they can manage GST compliance and filing along with GSTN appointed GST Suvidha Providers.”

Role of GSP and ASP in GST regime

What will the GSPs facilitate for taxpayers?

The concept of GSPs (GST Suvidha Providers) and ASPs (Application Service Providers) is relatively new.

The GST Network has architected an ecosystem that comprises 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 which will be available publically, free of charge. This portal is intended to enable them to upload their invoice information to the GST Network and file their returns seamlessly 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. This was very helpful particularly in the 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.

What does a GSP and ASP have in store for the large taxpayers?

While the centralized 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 customizations including integrations to their source systems for uploading reportable data. With the larger taxpayers’ needs in mind, the GSTN architected this system which comprises of the GSP and ASP.

A centralized platform

The design of the ecosystem takes off from the Aadhar Platform building experience of the government. When the Aadhar Platform was built, its intent was to have a core central platform which could 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 file returns. 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. Needless to mention, the introduction of GSPs and ASPs is leading to some positive impacts on the way taxes are being filed in the country.

There are a few things to keep in mind before you finalize a GSP for your business requirements. Here are the 4 most important questions to ask before selecting your GSP.